An authorized agent binds a principal on an instrument if the agent clearly names the principal in the signature.

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An authorized agent can bind a principal in an instrument if the agent clearly names the principal in the signature. This is known as the doctrine of "agency by ratification," and it allows a principal to be bound by the actions of an agent who acted without actual authority, as long as the principal ratifies those actions. Additionally, a principal can give an agent actual authority or apparent authority to act on their behalf, either through express or implied authorization.

An Authorized Agent Binds a Principal on an Instrument If