Warranty liability arises only when the transferor indorses the instrument.

Name: Warranty liability arises only when the transferor indorses the instrument.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

Warranty liability may arise even without an endorsement if the transferor is the issuer of the instrument or a person who has taken the instrument as an accommodation party. Additionally, warranty liability may also arise without an endorsement if the transferor has breached a warranty of the instrument.

Warranty Liability Arises Only When the Transferor Indorses the Instrument