Sarah Has a Checking Account at First Bank

Multiple Choice

Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes a check for $250 to himself, and then forges Sarah's signature. Orrin then indorses the instrument to Paul in payment of a debt. Paul, who does not know of the forgery, presents the instrument to First Bank for payment. At First Bank's request, Paul indorses the instrument, and the bank then pays him $250. Which of the following is correct?

A) Paul has breached the warranties on presentment.
B) Orrin has breached the warranties on presentment.
C) Sarah has breached the warranties on presentment.
D) All of these are correct.
E) Both Paul and Orrin have breached the warranties on presentment.