Question

True or False:A transfer warranty, made by a person who transfers an instrument for consideration to all subsequent transferees, impliedly makes five warranties relating to good title, authentic signatures, no alterations, no defenses, and no insolvencies.

Answer 1

Answer:True

Explanation: A transfer warranty is an implied promise made by one party known as the transferor to another party known as the transferee with regards to the title and credibility of an instrument.

Transfer warranty is achieved through indorsement(a financial term used to signify the signing of a signature at the back of a contract documents) by the transferor to the transferee.

A good transfer warranty is expected to have the following, it must be of a good title,no insolvency,must be authentically signed,must have no alterations etc