Asked by hilal erkan on Jul 20, 2024
Verified
Potter owes George $500.Potter writes a check payable to George for that amount.Later,George loses the check.Potter is now discharged from his liability on the check.
Discharged
The completion or termination of an obligation such as a debt or legal duty.
Liability
The state of being legally responsible for something, particularly in terms of debts or legal actions.
Check
A negotiable instrument, commonly used for transactions, instructing a bank to pay a specific amount from the drawer's account to the payee or bearer.
- Identify the conditions under which a party is discharged from liability on a negotiable instrument.
Verified Answer
NP
Nirav ParmarJul 21, 2024
Final Answer :
False
Explanation :
The most common ways that an obligor is discharged from his liability are payment of the instrument,cancellation of the instrument,alteration of the instrument,modification of the principal's obligation that causes loss to a surety or impairs the collateral,unexcused delay in presentment or notice of dishonor with respect to a check,and acceptance of a draft.
Learning Objectives
- Identify the conditions under which a party is discharged from liability on a negotiable instrument.