Asked by Bretton Lenzi on Jun 04, 2024
Verified
List and generally explain the warranties on presentment.
Warranties
Legally binding promises or guarantees about the state or quality of a product or service, provided by the seller.
Presentment
The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.
- Acquire knowledge on the guarantees and legal obligations of endorsers and transferors in the domain of negotiable instruments.
Verified Answer
ME
Mariana ElizondoJun 09, 2024
Final Answer :
The warranties on presentment depend on who is the payor or the acceptor. The greatest protection is given to drawees of unaccepted drafts, while all other payors receive significantly less protection.
Presentment warranties to drawees of unaccepted drafts include:
a. entitlement of the presenter to enforce the instrument.
b. that the instrument has not been altered.
c. that the presenter has no knowledge that the drawer's signature is unauthorized.
In instances other than a drawee of an unaccepted draft or uncertified check, the only presentment warranty that is given is that the warrantor is a person entitled to enforce the instrument or is authorized to obtain payment on behalf of the person entitled to enforce the instrument.
Presentment warranties to drawees of unaccepted drafts include:
a. entitlement of the presenter to enforce the instrument.
b. that the instrument has not been altered.
c. that the presenter has no knowledge that the drawer's signature is unauthorized.
In instances other than a drawee of an unaccepted draft or uncertified check, the only presentment warranty that is given is that the warrantor is a person entitled to enforce the instrument or is authorized to obtain payment on behalf of the person entitled to enforce the instrument.
Learning Objectives
- Acquire knowledge on the guarantees and legal obligations of endorsers and transferors in the domain of negotiable instruments.
Related questions
A.What Warranties Are Given by an Indorser ...
An Indorser,whether or Not She Receives Consideration for the Instrument,must ...
Bruce,who Works for Laura's Used Car Dealership,forges Laura's Name to ...
When the Transfer of an Instrument Breaches a ________ Associated ...
Warranties Do Not Apply Without the Indorsement of the Transferor