Presentment Warranty of a Negotiable Instrument

The video tutorial explains presentment warranty, primarily applicable to drafts. It covers the roles of drawer, drawee, and holder, and the warranties the presenter provides to the drawee, ensuring the instrument has good title, is not forged, and unaltered. If these warranties are breached, the drawee can seek recovery from the presenter or prior transferors. The video also discusses the broader scope of liability for transferors and the conditions under which liability can be disclaimed, particularly focusing on checks and non-check drafts.

Who is responsible for presenting the instrument for payment in a draft situation?

• The bank

• The holder

• The drawee

• The drawer

What can the drawee do if they wrongfully pay a draft?

• Seek recovery from the bank

• Seek recovery from the holder and prior transferors

• Seek recovery from the government

• Seek recovery from the drawer only

What is the broader scope of liability meant to protect?

• Drawers

• Holders

• Drawees

• Banks

Can a transferor disclaim liability on a check?

• Yes, but only on non-check drafts

• Yes, but only on checks

• No, never

• Yes, always

What type of drafts can a transferor disclaim liability on?

• No drafts

• All drafts

• Non-check drafts

• Check drafts