Negotiable Instruments Act Section 28 — Liability of agent signing

CHAPTER III PARTIES TO NOTES, BILLS AND CHEQUES.

General

Summary

If a person signs a promissory note, bill of exchange, or cheque as an agent, they are personally responsible for that instrument unless they clearly indicate on the document that they are signing only as an agent or that they do not intend to take on personal liability. However, this personal liability does not apply to anyone who persuaded the agent to sign by making them believe that only the principal (the person they represent) would be held responsible.

Official Text

An agent who signs his name to a promissory note, bill of exchange or cheque without indicating thereon that he signs as agent, or that he does not intend thereby to incur personal responsibility, is liable personally on the instrument, except to those who induced him to sign upon the belief that the principal only would be held liable.