Bills of Exchange Act, 1964 (Act No. 34 of 1964)Chapter ILiabilities of parties56. Liability of transferor by delivery |
| (1) | If the holder of a bill payable to bearer negotiates such bill by delivery without indorsing it, he is called a transferor by delivery. |
| (2) | A transferor by delivery is not liable on the instrument in question. |
| (3) | A transferor by delivery who negotiates a bill thereby warrants to his immediate transferee, if the latter is a holder for value, that the bill is what it purports to be, that he has a right to transfer it, and that, at the time of transfer, he is not aware of any fact which renders it valueless. |