transfer warranties Flashcards
warranties that a transferor makes includes
warrantor entitled to enforce; all sigs are authorized and authentic; instrument has not been altered; no defense; warrantor has no knowledge of any insolvency proceedings
enforcement of an instrument
p must prove 1) he is entitled to enforce and signatures are valid
who is entitled to enforce
a holder, non-holder in possession who has rights of a holder; not in possession, but has right to enforce
valdity of sigs
valid unless specifically denied in the pleadings
once established
d can assert any real or personal defenses
real defenses
infancy (in state where contracts are void or voidable with minors)
incapacity
duress- extreme durress
illegality
fraud (in the factum- idk what im signing)
discharge of insolvency
alteration that would make a real person question it
SOL
PERSONAL defenses
only effective against those who have holder status
ineffective against hdc status
types of personal defenses
issuance (i never issued this)
k defenses
claims in recoupment
unauthorized signatures and imposters
if induced to write one, liable
fictitious payee
employee writes fake checks– employer still liable
fraudulent indorsement
employer will be liable if someone with check writing power fraudulently endorses it
benefitted parties
if a party takes it and deposits it, the bank will not be liable unless they failed to exercise ordinary care in taking that instrument and substantially contributes to loss resulting from loss of that instrument
alterations
unauthorized modification of the instrument means obligor is discharged on the instrument
can it still be enforced on the original terms?
yes if bank or hdc
