Signature by procuration in negotiable instruments

Category: Law on Negotiable Instruments

Sec.  21.  Signature  by  procuration;  effect  of.  -  A  signature  by "procuration"  operates  as  notice  that  the  agent  has  but  a  limited authority to sign, and the principal is bound only in case the agent in so signing acted within the actual limits of his authority.
 

HOW SIGNATURE PER PROCURATION IS MADE

      “Luis Martin Tan, Per Procuration: Ryan Teehankee” on which Luis Tan is the principal while Ryan Teehankee is the agent
 

EFFECT OF SIGNATURE PER PROCURATION

      Constitutes a warning that an agent has a limited authority
      A person who takes the instrument so signed is bound at his peril to inquire  into  the  extent  and  nature  of  the  agent’s  authority,  and  this applies to every person