Isabel transfers a note, for consideration, to Juliet by blank indorsement and delivery. Juliet transfers the note to Kip, who takes it in good faith. In this situation, Isabel warrants to Kip that
A) he is entitled to enforce the note.
B) the note has been fully paid.
C) any defense to payment on the note can be assered against him.
D) none of the choices.

Question

Isabel transfers a note, for consideration, to Juliet by blank indorsement and delivery. Juliet transfers the note to Kip, who takes it in good faith. In this situation, Isabel warrants to Kip that​
A) ​he is entitled to enforce the note.
B) ​the note has been fully paid.
C) ​any defense to payment on the note can be assered against him.
D) ​none of the choices.

Quizplus · Accepted Answer

By transferring the note through blank indorsement and delivery, Isabel warrants to Kip that he is entitled to enforce the note, meaning that he has the legal right to demand payment from the debtor (maker of the note). However, Isabel does not warrant that the note has been fully paid or that no defense to payment can be asserted against Kip.

Isabel Transfers a Note, for Consideration, to Juliet by Blank