Code of Alabama
Ala. Code § 7-3-401 (2026)
Signature Necessary for Liability on Instrument.
✓ official Alabama Legislature (ALISON) text, current July 2026
A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under Section 7-3-402.
(Acts 1965, No. 549, p. 811; repealed by Acts 1995, No. 95-668, p. 1381, §1; added by Acts 1995, No. 95-668, p. 1381, §1; Act 2023-492, §1.)
Notes of Decisions
Cited in 4
cases (1 in the last 5 years), 1990–2025 · leading case: JLJ, Inc. v. Rush Bldg. Co. (In re JLJ, Inc.), 115 B.R. 324 (Bankr. N.D. Ala. 1990).
JLJ, Inc. v. Rush Bldg. Co. (In re JLJ, Inc.), 115 B.R. 324 (Bankr. N.D. Ala. 1990). “In that article of the Alabama Commercial Code, Part 4 is titled “Liability of Parties,” and § 7-3-401(2) thereunder provides that “[a] signature is made by use of any name, including any trade or assumed name, upon an instrument, or by any word or mark used in lieu of a written…”
Felton (N.D. Ala. 2025). “Code § 7-3-104 ; Ala. Code § 7-3-401 . Here, Plaintiff signed the promissory note (Doc.”
Boley v. Sears, Roebuck & Co., 582 So. 2d 562 (Ala. Civ. App. 1991). “It was not tried on the theory of negotiable instruments, and the trial court made no rulings concerning the applicability of §§ 7-3-401(1), -403(2) and -404(1), Code 1975.”
Eady v. Crews Mobile Homes, Inc., 958 So. 2d 904 (Ala. Civ. App. 2006). “Ala. Code 1975, § 7-3-401(a)(i) (“A person is not hable on an instrument unless .”
— Ala. Code § 7-3-401(1) — 1 case
Boley v. Sears, Roebuck & Co., 582 So. 2d 562 (Ala. Civ. App. 1991). “It was not tried on the theory of negotiable instruments, and the trial court made no rulings concerning the applicability of §§ 7-3-401(1), -403(2) and -404(1), Code 1975.”
— Ala. Code § 7-3-401(2) — 1 case
JLJ, Inc. v. Rush Bldg. Co. (In re JLJ, Inc.), 115 B.R. 324 (Bankr. N.D. Ala. 1990). “In that article of the Alabama Commercial Code, Part 4 is titled “Liability of Parties,” and § 7-3-401(2) thereunder provides that “[a] signature is made by use of any name, including any trade or assumed name, upon an instrument, or by any word or mark used in lieu of a written…”
— Ala. Code § 7-3-401(a)(i) — 1 case
Eady v. Crews Mobile Homes, Inc., 958 So. 2d 904 (Ala. Civ. App. 2006). “Ala. Code 1975, § 7-3-401(a)(i) (“A person is not hable on an instrument unless .”
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