A(n) ______ is one whose identity is known by the third party at the time a contract is entered into with an agent.
a. undisclosed principal
b. clear principal
c. specific principal
d. legitimate principal
e. none of the other choices are correct
Question 2
Hand executed and delivered to Rex a 1,000 negotiable note payable to Rex or bearer. Rex then negotiated it to Ford and indorsed it on the back by merely signing his name. Which of the following is a correct statement?
a. Rex's indorsement was a special indorsement.
b. Rex's indorsement was necessary to Ford's qualification as a holder.
c. The instrument initially being bearer paper cannot be converted to order paper.
d. The instrument is bearer paper, and Ford can convert it to order paper by writing pay to the order of Ford above Rex's signature.
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