Chapter 28: Avery v Whitworth

When George Avery signed a letter regarding the unpaid balance of $20,000, he failed to indicate his representative capacity as President and is therefore personally liable. The company name (V&L Manufacturing Co.) printed at the bottom and "George Avery, President" printed at the top of the stationery is not sufficient in demonstrating a signers representative capacity. According to the case, "it is the form of the signature in the note, and not that other printed information that appears on the page which governs the capacity in which the signer executes the note." To avoid personal liability, Avery should have signed the note "George S. Avery, President" rather than "Your Friend, George S. Avery." The word "President" after Avery's name would have been sufficient in demonstrating his representative capacity.