Asked by James Bertakis on Jul 21, 2024
Verified
Warranties do not apply without the indorsement of the transferor.
Warranties
Legally binding promises or guarantees about the condition, quality, or performance of goods or services sold, which are enforceable under the sale of goods laws.
Indorsement
A signature or stamp on a financial document transferring the rights and responsibilities from one party to another.
Transferor
The party who transfers a right, title, or interest in property to another party, known as the transferee.
- Acknowledge the influence of endorsements and warranties on negotiable instruments.
Verified Answer
MG
Matthew GaudetteJul 23, 2024
Final Answer :
False
Explanation :
Although contractual liability often furnishes a sufficient basis for suing a transferor when the party primarily obligated does not pay,warranties are still important. They apply even when the transferor did not indorse.
Learning Objectives
- Acknowledge the influence of endorsements and warranties on negotiable instruments.