Any person who, by his own negligence, substantially contributes to the making of an unauthorized signature may not assert the lack of authority as a defense against a holder in due course.

Question

Quizplus · Accepted Answer

The statement accurately reflects the principle of agency law regarding unauthorized signatures and negligence. If a person's own negligence substantially contributes to the making of an unauthorized signature, they cannot claim lack of authority as a defense against a holder in due course.

Any Person Who, by His Own Negligence, Substantially Contributes to the Making