Liability in which a person cannot be held contractually liable on a negotiable instrument unless his or her signature appears on the instrument is referred to as .

Signature liability

Explanation:

 The signature liability is basically associate with the negotiable instruction as the people are not contractually liable only the signature person has the liability for the payment based on the specific amount.

The signature liability is basically refers to the signature on the negotiable instrument that is used for identifying the main person who ar obligated for paying. Therefore, Signature liability is the correct answer.

answer; /// i do believe that the above is (true)

answer; /// i do believe the correct answer is (possession utility);