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Who has warranty liability

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Reference no: EM131553510

Short Answer:

Andy is the payee of a negotiable promissory note on which Barry is the maker. Andy indorses the note in blank and delivers it to Claire for value, who then transfers it to Debra for value without indorsement. Debra presents it to Barry for payment when it becomes due, but Barry claims he signed the note based upon fraud in the inducement and refuses to pay.

Part A: Who is primarily liable on the instrument? Who is secondarily liable on the instrument?

Part B: Who has warranty liability? Explain.

Part C: From whom can Debra try to collect and why?

Reference no: EM131553510

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