Discharge from liability by cancellation, release or payment discharges makers, acceptors and indorsers under negotiable instruments. The maker, acceptor or indorser is discharged from liability by cancellation when a holder cancels the acceptor's or indorser's name with intent to discharge him and to parties claiming under that holder; by release when a holder otherwise discharges the party and to those deriving title after notice of such discharge; and by payment to all parties where the instrument is payable to bearer or indorsed in blank and payment is made in due course.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Discharge from liability by cancellation, release or payment discharges makers, acceptors and indorsers under negotiable instruments.
The maker, acceptor or indorser is discharged from liability by cancellation when a holder cancels the acceptor's or indorser's name with intent to discharge him and to parties claiming under that holder; by release when a holder otherwise discharges the party and to those deriving title after notice of such discharge; and by payment to all parties where the instrument is payable to bearer or indorsed in blank and payment is made in due course.
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