Asked by Marianne Claire on May 03, 2024
Verified
An indorser,whether or not she receives consideration for the instrument,must make five warranties to subsequent transferees of the instrument.The fifth warranty provides that the indorser has no knowledge of the bankruptcy of the maker,acceptor,or drawer.
Bankruptcy
A legal proceeding involving a person or business that is unable to repay outstanding debts, providing a way to eliminate or repay some or all debt under the protection of the bankruptcy court.
Warranties
Promises made by a seller to a buyer regarding the condition, functionality, or reliability of a product or service.
- Acquire knowledge of the guarantees and liabilities associated with endorsers in the conveyance of negotiable instruments.
Verified Answer
DS
Diana SinghMay 07, 2024
Final Answer :
False
Explanation :
The fifth warranty actually states that the indorser has no knowledge of any fact that would impair the validity of the instrument or render it valueless, not specifically about the bankruptcy of the maker, acceptor, or drawer.
Learning Objectives
- Acquire knowledge of the guarantees and liabilities associated with endorsers in the conveyance of negotiable instruments.
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