Fanny signs a note "payable to the order of Guaranty Bank." Guaranty indorses the note in blank and negotiates it to Haji,who sells it to Iona. Liability associated with the transfer of the note from Haji to Iona is
A)conceptual.
B)contractual.
C)signature.
D)warranty.

Question

Quizplus · Accepted Answer

The liability associated with the transfer of a negotiable instrument like a note is typically warranty liability. When Haji sells the note to Iona, Haji provides certain warranties regarding the note, such as that it is genuine, has not been altered, and that he has good title to it.

Fanny Signs a Note "Payable to the Order of Guaranty