Medina argues that he is not personally liable on account of having signed the check. Explain who should prevail.

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Medina argues that he is not personally liable on account of having signed the check. Explain who should prevail.

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Vincent Medina signed a check in the amount of $34,348 written on the account of First Delta Financial, a family corporation owned and controlled by Medina. His corporate title did not appear before his signature. He issued the check to James G. Wyche. The check was dishonored for insufficient funds. First Delta Financial is in bankruptcy. Wyche contends that Medina is personally liable because Medina signed the check without indicating his corporate capacity below his signature. Medina argues that he is not personally liable on account of having signed the check. Explain who should prevail.

Explanation & AnswerSolution by a verified expert

Explanation

Individual M, while signing the check in favor of Individual J, was just representing the interests of Corporation F and did not sign the check to create any personal liability. It was not mandatory for Individual M to show the agency status while signing the check.
Individual M rightfully signed the check and did not deceive anyone to think that it was the personal liability of Individual M to pay for the check drawn in favor of Individual J.

Verified Answer

Individual V will be favored in the court as the signature on the check, which was drawn by Individual V in favor of Individual J, was the authorized signature of Individual M. Individual M was representing Corporation F and did not deceive anyone to think that the liability against the check was the personal liability of Individual M.

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