Drag and Drop the appropriate terms into the spaces provided. The manner of transfer and the type of negotiation that are used determine how far a warranty will run and whom it will cover. Transfer of an order instrument by Indorsement and delivery warranty liability to any subsequent holder who takes the instrument in good faith. However, the warranties of a person who, for consideration, transfers without indorsement (by delivery of a bearer instrument) will extend only to the immediate A transferee or holder who takes an instrument in good faith can sue on the basis of of a warranty as soon as he or she has reason to know of the breach. Presentment warranties cannot be disclaimed with respect to Fill in the blanks with words that would best complete the passage. checks payee negotiate transfer promissory notes restricts addition transferee extends breach