DISCHARGE OF A NEGOTIABLE INSTRUMENT

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 Payment in due course:-

*A negotiable instrument is discharged if the party primarily liable on the negotiable instrument makes the payment in due course.

*When the payment is made, the negotiable instrument must be cancelled or the fact of payment must be recorded negotiable instrument.

Cancellation:-

Where the holder cancels the name of the party primarily liable on the negotiable instrument, with intent to discharge him, the negotiable instrument is discharged.

Release:-

Where the holder releases or renounces his right against the party primarily liable on the negotiable instrument, the negotiable instrument is discharge.

Negotiation back:-

Where a party primarily liable on a negotiable instrument becomes the holders of the negotiable instrument, the negotiable is discharged.

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