Tanika has a checking account at First Bank.Orrin steals one of her blank checks,writes a check for $250 to himself,and then forges Tanika's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul,not realizing Orrin has forged Tanika's signature,presents the instrument to First Bank for payment.At First Bank's request,Paul indorses the instrument,and the bank then pays him $250.Which of the following is correct?
A) Paul has breached the warranties on presentment.
B) Orrin has breached the warranties on presentment.
C) Tanika has breached the warranties on presentment.
D) Paul,Orrin and Tanika have all breached the warranties on presentment.

Question

Quizplus · Accepted Answer

Orrin has breached the warranties on presentment because he forged Tanika's signature on the check and then transferred it to Paul. The act of forging and transferring a check is a direct breach of the warranty that the signer is authorized and has the right to enforce the check.

Tanika Has a Checking Account at First Bank