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Because banks rely on transfer warranties in the check-collection process, these warranties cannot be disclaimed with regard to checks.
Transfer Warranties
Legal assurances given by a seller to a buyer regarding the title, quality, and condition of goods or property being sold.
Check-Collection
The process of receiving and processing checks to obtain payment from the banking institutions on which they are drawn.
Disclaimed
Refused to acknowledge or accept something, especially legal claims or responsibility.
- Discern the scenarios that result in warranty liability upon the transfer of a negotiable instrument.
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Learning Objectives
- Discern the scenarios that result in warranty liability upon the transfer of a negotiable instrument.
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