30-7-507. Warranties on negotiation or delivery of document of title. If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under 30-7-508, unless otherwise agreed, the transferor warrants to its immediate purchaser only in addition to any warranty made in selling or leasing the goods that:
(1) the document is genuine;
(2) the transferor does not have knowledge of any fact that would impair the document's validity or worth; and
(3) the negotiation or delivery is rightful and fully effective with respect to the title to the document and the goods it represents.
History: En. Sec. 7-507, Ch. 264, L. 1963; R.C.M. 1947, 87A-7-507; amd. Sec. 67, Ch. 575, L. 2005.
Structure Montana Code Annotated
Part 5. Warehouse Receipts and Bills of Lading Negotiation and Transfer
30-7-501. Form of negotiation and requirements of due negotiation
30-7-502. Rights acquired by due negotiation
30-7-503. Document of title to goods defeated in certain cases
30-7-505. Endorser not a guarantor for other parties
30-7-506. Delivery without endorsement -- right to compel endorsement
30-7-507. Warranties on negotiation or delivery of document of title
30-7-508. Warranties of collecting bank as to documents of title