Under the general rule, a forged signature is not effective as the signature of the person named. Which option best states that rule?

Under the general rule, a forged signature is not effective as the signature of the person named. Which option best states that rule?

• A. It is always effective
• B. It is never effective
• C. It is not effective under the general rule
• D. It depends on the instrument

Answer: (C)

The main idea here is that a signer's forged signature on a negotiable instrument is not treated as the actual signature of the person named. Because the signature did not come from the named individual, it generally cannot bind that person or be used to enforce the instrument against them. That’s why the correct statement is that it is not effective under the general rule—the forged signature does not count as the named person’s signature in the absence of any later ratification or adoption. In contrast, the other options aren’t accurate. A forged signature isn’t always effective, since it’s usually invalid unless the signer later adopts it or other exceptions apply. Saying it’s never effective ignores the possibility of ratification or other doctrines that can make a forged signature binding in specific circumstances. Saying it depends on the instrument is too vague for the general rule, which applies broadly, with exceptions.

The main idea here is that a signer's forged signature on a negotiable instrument is not treated as the actual signature of the person named. Because the signature did not come from the named individual, it generally cannot bind that person or be used to enforce the instrument against them. That’s why the correct statement is that it is not effective under the general rule—the forged signature does not count as the named person’s signature in the absence of any later ratification or adoption.

In contrast, the other options aren’t accurate. A forged signature isn’t always effective, since it’s usually invalid unless the signer later adopts it or other exceptions apply. Saying it’s never effective ignores the possibility of ratification or other doctrines that can make a forged signature binding in specific circumstances. Saying it depends on the instrument is too vague for the general rule, which applies broadly, with exceptions.