In Order to Ensure Negotiability, the Uniform Commercial Code Assumes

question 8

Multiple Choice

In order to ensure negotiability, the Uniform Commercial Code assumes that the endorser is the true owner of the paper. If he or she found or stole the paper and transferred it to another by endorsement, the:

• A) law provides a jail term to the endorser, but not compensation to endorsee.
• B) endorser is liable for any loss suffered by the endorsee.
• C) endorser is liable up to $500 for the loss suffered by the endorsee.
• D) endorsee cannot seek any remedy from the endorser.

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Definitions:

Anticipatory Breach

A situation in contract law where one party shows intent not to fulfill their contractual obligations before the due performance.

Third Party

An individual or group aside from the two primarily involved in a situation, often providing services, intervening, or affected by the actions of the main parties.

Original Parties

The entities or individuals who enter into a contract or legal agreement initially, before any assignments or transfers.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and possibly seek compensation for damages.