Transferors cannot be held liable for breaching implied warranties when negotiating instruments.

Question

Quizplus · Accepted Answer

Transferors can be held liable for breaching implied warranties such as that the instrument is genuine, free from material alteration, and has not been previously dishonored. However, the extent of their liability may vary depending on the type of instrument and the relationship between the transferor and transferee.

Transferors Cannot Be Held Liable for Breaching Implied Warranties When