Monty, a career criminal, steals a diamond from Prime Cut Jewelers. He then sells it to Adamas Jewelers, who is 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 the cost from Monty?

Question

Quizplus · Accepted Answer

The warranty of good title is breached when the seller fails to provide clear and marketable title to the buyer. In this case, Monty, who is not the rightful owner of the diamond, sold it to Adamas. Therefore, Adamas can declare a breach of warranty of good title and recover the cost from Monty. The other warranty options do not apply in this scenario.

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