Agency Formation and Duties

Introduction Agency=Principal and Agent. Agency is the most common and most important legal relationship. Understanding agency is crucial to understanding the legal environment of business. Principals use agents to be able to conduct multiple business operations simultaneously in various locations.   The principal has the right to control the agent in matters entrusted...

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Liability, Defenses, and Discharge

Liability There are two kinds of liability associated with negotiable instruments: Signature liability. Warranty Liability. Signature Liability Relates to signatures on instruments. Signers of negotiable instruments are potentially liable for amount stated on instrument. Primary Liability: Makers/Acceptors. Secondary Liability: Drawers/Indorsers. Primary versus Secondary Liability Makers. ...

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