Transfer and Presentment Warranties
Presentment and Transfer Warranties
Presentment and Transfer Warranties have various similarities. In both cases, the presenter and the transferor must ensure the instruments are signed which explains the obligation of who represents it. As such, the makers and the acceptors are subject to primary liability. In both cases, the person presenting the warranties must do it on a timely basis and in a proper manner. In transfer warranty, the person transferring the instrument makes implied warranties which are considered by the subsequent transferees. In presentment warranty, the person making the making presentment must do it in a reasonable way such as a written form or any other method. In both cases, the draft should not be altered. The presenter should establish that the draft is intact and if it is not, he is, therefore, accepting liability for damages that arise in such alterations (Miller, Cross, Jentz 465). Similarly, the transferor should ensure that the instrument is not altered since the warranty liability extends to the holder who takes it in good faith.
On the other hand, the two contain specific differences. In transfer warranty, the transferor has a legal obligation to enforce the instrument whereas the presenter in presentment warranty only acts as an agent for the person executing the draft. As such, in presentment warranty, the presenter is just accepting liability since he is the current holder of the ins…
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