Draft Payment Warranty For Free

A representation is an assertion as to a fact, true on the date the representation is made, that is given to induce another party to enter into a contract or take some other action. A warranty is a promise of indemnity if the assertion is false.

A representation is a statement of fact; a warranty is a promise of fact. Admittedly, they can look very similar. Language such as ?I am a licensed contractor? could be a representation, a warranty, or both.

The original homeowner may transfer the warranty to a new homeowner within the one year period after installation. In the case of a builder and new construction, the builder can sell the home within one year of installation and the warranty will transfer to the new buyer.

A transferor of a negotiable instrument warrants to the transferee five things: (1) entitled to enforce, (2) authentic and authorized signatures, (3) no alteration, (4) no defenses, and (5) no knowledge of insolvency.

Presentment Warranties A payor paying or accepting an instrument in effect takes the paper from the party who presents it to the payor, and that party has his hand out. In doing so, the presenter makes certain implied promises to the payor, who is about to fork over cash (or an acceptance).

Breach of warranty by misrepresentation may be brought in tort for damages or in contract if the representation was made as an inducement of a contract. Breach of warranty to do or refrain from some action is usually brought as a breach of contract action for damages, rescission or for specific performance.

Transfer warranty refers to an implied promise relating to the title and credibility of an instrument made by a transferor to a transferee. Generally, a transfer warranty is made for transfers through indorsement. A transfer warranty can also be granted to any remote transferee through indorsement of an instrument.

Those warranties were made to the drawee when the draft was presented for acceptance ( Section 3-417(a)(2) and (3)) and breach of that warranty is a defense to the obligation of the drawee as acceptor to pay the draft.

What is presentment warranty of a negotiable instrument? Presentment warranty applies when a person entitled to payment of an instrument presents it to a maker or drawee for payment.

Presenters who obtain payment of an instrument and all prior transferors make three presenter's warranties: (1) entitled to enforce, (2) no alteration, (3) genuineness of drawer's signature. These warranties run to any good-faith payor or acceptor.