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:

Terms Used In Montana Code 30-7-507

  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Montana Code 30-7-102
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201

(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.