Asked by Nicholas Alvarez on May 16, 2024
Verified
What type of liability arises when the transfer of the instrument breaches a warranty associated with the instrument?
A) Warranty
B) Payee
C) Signature
D) Primary
E) Secondary
Warranty Liability
Liability attributed when the transfer of an instrument breaches a warranty associated with an instrument.
- Understand the functions and meanings of endorsements and warranties in the context of negotiable instrument transactions.
Verified Answer
MC
Marie CynetteMay 22, 2024
Final Answer :
A
Explanation :
A party may be liable for an instrument because of a breach of warranty.The two relevant types of warranties are transfer warranties and presentment warranties.
Learning Objectives
- Understand the functions and meanings of endorsements and warranties in the context of negotiable instrument transactions.
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