Asked by Jessie Kindley on May 12, 2024
Verified
Regardless of whether a transfer is through an endorsement,transfer warranties apply to any future holders.
Transfer Warranties
Guarantees provided by a seller to a buyer regarding the condition and legality of the item or property being transferred.
Endorsement
The act of signing one's name on the back of a financial instrument, such as a check, thereby transferring rights or title to another party.
- Recognize the role and definitions of endorsements and warranties in the transfer of negotiable instruments.
Verified Answer
JS
Jacqueline SanchezMay 15, 2024
Final Answer :
False
Explanation :
If a transfer is through endorsement,transfer warranties apply to any future holders.However,if the transfer does not occur through endorsement,the warranties apply only to the transferee.
Learning Objectives
- Recognize the role and definitions of endorsements and warranties in the transfer of negotiable instruments.
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