If a person negotiates or delivers a document of title for value, otherwise than as a mere intermediary under § 47-7-508, unless otherwise agreed, the transferor, in addition to any warranty made in selling or leasing the goods, warrants to its immediate purchaser only that:

(1) The document is genuine;
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Terms Used In Tennessee Code 47-7-507

  • Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Tennessee Code 47-7-102
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
(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.
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