Code of Alabama
Ala. Code § 7-3-403 (2026)
Unauthorized Signature.
✓ official Alabama Legislature (ALISON) text, current July 2026
(a) Unless otherwise provided in this article or Article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this article.
(b) If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
(c) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this article which makes the unauthorized signature effective for the purposes of this article.
(Acts 1995, No. 95-668, p. 1381, §1.)
Notes of Decisions
Cited in 8
cases, 1982–2014 · leading case: Ex Parte Coussement, 412 So. 2d 783 (Ala. 1982).
Ex Parte Coussement, 412 So. 2d 783 (Ala. 1982). “At the outset, we observe that Code 1975, § 7-3-403, addresses the matter of an agent incurring personal liability when signing in a representative capacity for his principal: (2) An authorized representative who signs his own name to an instrument: (a) Is personally obligated…”
Legg v. Kelly, 412 So. 2d 1202 (Ala. 1982). “Although "by" preceded Kelly's signature, the signature line bore the designation of "debtor" and thereby, atleast, the instant case is distinguishable from Smith.”
Bar-Ram Irrigation Prods. v. Phenix-Girard Bank, Shalom Irrigation, Inc., 779 F.2d 1501 (11th Cir. 1986). “Ala.Code § 7-3-403(2)(a) (1975); Phenix-Girard Bank v.”
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…”
Owens v. Durden, 440 So. 2d 1079 (Ala. Civ. App. 1983). “Durden argues that this situation is governed by § 7-3-403, Code of Alabama 1975, and that Owens is liable on the contract because the contract fails to state Owens’ corporate office.”
Prof'l Bus. Sys., Inc. v. Kaufman, 507 So. 2d 421 (Ala. 1987). “…parties to the instrument can establish by parol evidence whether personal liability exists. See also Comment 3 to § 7-3-403.”
Fanuk Human Resources v. Cash Flow V CA2/3 (Cal. Ct. App. 2014). “(Ala. Code, § 7-3-403.) Whether there has been ratification of a forged signature is ordinarily a question of fact, as is the question of whether one is estopped to deny the validity of a forged signature.”
Vaughan v. Eich, 646 So. 2d 113 (Ala. Civ. App. 1994). “Comment 1 to § 7-3-403 provides, in pertinent part, that “[the] power to sign for another .”
— Ala. Code § 7-3-403(1) — 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 § 7-3-403(2)(a) — 2 cases
Ex Parte Coussement, 412 So. 2d 783 (Ala. 1982). “At the outset, we observe that Code 1975, § 7-3-403, addresses the matter of an agent incurring personal liability when signing in a representative capacity for his principal: (2) An authorized representative who signs his own name to an instrument: (a) Is personally obligated…”
Bar-Ram Irrigation Prods. v. Phenix-Girard Bank, Shalom Irrigation, Inc., 779 F.2d 1501 (11th Cir. 1986). “Ala.Code § 7-3-403(2)(a) (1975); Phenix-Girard Bank v.”
— Ala. Code § 7-3-403(2)(b) — 3 cases
Ex Parte Coussement, 412 So. 2d 783 (Ala. 1982). “At the outset, we observe that Code 1975, § 7-3-403, addresses the matter of an agent incurring personal liability when signing in a representative capacity for his principal: (2) An authorized representative who signs his own name to an instrument: (a) Is personally obligated…”
Bar-Ram Irrigation Prods. v. Phenix-Girard Bank, Shalom Irrigation, Inc., 779 F.2d 1501 (11th Cir. 1986). “Ala.Code § 7-3-403(2)(a) (1975); Phenix-Girard Bank v.”
Prof'l Bus. Sys., Inc. v. Kaufman, 507 So. 2d 421 (Ala. 1987). “…parties to the instrument can establish by parol evidence whether personal liability exists. See also Comment 3 to § 7-3-403.”
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