Asked by Krista Hageman on Jun 16, 2024
Verified
By paying the holder on an instrument, a party may be discharged from liability.
Discharged From Liability
A condition where an individual or entity is legally released from an obligation or debt.
Paying The Holder
The act of disbursing funds or settling a financial obligation to the lawful possessor of a negotiable instrument.
- Determine the situations in which a party's liability is nullified regarding a negotiable instrument.
Verified Answer
HH
H?c hành - Gi?i tríJun 19, 2024
Final Answer :
True
Explanation :
By paying the holder on an instrument, the party who pays is considered to have fulfilled their obligation and is therefore discharged from any further liability on the instrument.
Learning Objectives
- Determine the situations in which a party's liability is nullified regarding a negotiable instrument.