Monty, a career criminal, steals a diamond from Prime Cut Jewelers.He then sells it to gemstone jeweler, Adamas.Adamas Jewelers are unaware of the stolen nature of the diamond.If Prime Cut discovers that the diamond is with Adamas, and reclaims the diamond, what warranty breach can Adamas declare to recover from Monty?

Question

Quizplus · Accepted Answer

The warranty of good title is breached in this situation. Monty, being a career criminal, did not have legal ownership of the diamond and therefore could not transfer the ownership to Adamas. As a result, Adamas does not have good title to the diamond and is not entitled to keep it if Prime Cut reclaims it.

Monty, a Career Criminal, Steals a Diamond from Prime Cut