Asked by Morgan Rutter on Apr 27, 2024
Verified
Set forth the five items that a party warrants when the party transfers an instrument for consideration.
Warrants
Legal documents issued by a court or government official authorizing the police or another body to make an arrest, search premises, or carry out some other action relating to the administration of justice.
Consideration
Something of value exchanged between parties as part of a contract, which is required for the contract to be legally binding.
- Understand the particular provisions of the UCC pertaining to discharge, the impairment of collateral, and the guarantees associated with the transfer of negotiable instruments.
Verified Answer
JB
Jeetendra BhandariMay 01, 2024
Final Answer :
When a party transfers an instrument for consideration,he or she warrants that:
(a)The transferor is entitled to enforce the negotiable instrument;
(b)Signatures on the instrument are authentic and authorized;
(c)The instrument has not been altered;
(d)The instrument is not subject to a defense or claim in recoupment; and
(e)The transferor has no knowledge of insolvency proceedings against the maker,acceptor,or drawer of the instrument.
(a)The transferor is entitled to enforce the negotiable instrument;
(b)Signatures on the instrument are authentic and authorized;
(c)The instrument has not been altered;
(d)The instrument is not subject to a defense or claim in recoupment; and
(e)The transferor has no knowledge of insolvency proceedings against the maker,acceptor,or drawer of the instrument.
Learning Objectives
- Understand the particular provisions of the UCC pertaining to discharge, the impairment of collateral, and the guarantees associated with the transfer of negotiable instruments.