Question

Ross signs an instrument using an "R" with a circle around it. With this mark for a signature, the instrument is
A) negotiable.
B) nonnegotiable, because an initial does not state the signer's name.
C) nonnegotiable, because an initial is not a signature.
D) nonnegotiable, because a simple initial implies a lack of binding intent.

Answer 1

Answer: The correct answer is "A) negotiable."

Explanation: With this mark for a signature, the instrument is: negotiable.

This initial account as a signature, does not imply any lack of binding intention, and is a correct demonstration of consent about the obligation that is being assumed.