19:43
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Simple English definitions for legal terms
impostor rule
Read a random definition: obligatio quasi ex delicto
A quick definition of impostor rule:
The impostor rule is a law that says if someone pretends to be someone else and signs a check or other important document, it is not considered forgery. However, the person who gave the impostor the document is responsible for any problems that arise from it. This means that if someone gives a check to an impostor, and that impostor signs it and cashes it, the person who gave them the check is responsible for paying it back.
A more thorough explanation:
The impostor rule is a principle in commercial law that states that an impostor's endorsement of a negotiable instrument is not considered forgery. Instead, the drawer or maker who issued the instrument to the impostor is considered negligent and therefore liable to the holder for payment.
For example, if someone pretends to be a payee and receives a check from the drawer or maker, any forgery of the payee's name on the check will be considered valid if the check is paid by someone in good faith or taken for value or collection.
This means that the person who issued the check to the impostor is responsible for any losses incurred by the holder of the check due to the impostor's actions.