Discharge of a party


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DISCHARGE OF A PARTY   {Sec. 82 to 90}

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Payment:-

Payment by a party who is secondarily liable on a negotiable instrument discharges the holder and all parties subsequent to the party making payment of the negotiable instrument.

Cancellation:-

Where the holder cancels the name of any party liable on the negotiable instrument (other than the party primarily liable on the negotiable instrument), such a party and all parties subsequent to him are discharged.

Release:-

Where the holder releases any party liable negotiable instrument (other than the party primarily liable on the negotiable instrument), such a party and all parties subsequent to him are discharged.

Allowing drawee more than 48 hours to accept:-

All prior parties not consenting to the same are discharged from liability to such holder.

Qualified acceptance:-

Where a holder of the bill consents to qualified acceptance, all the prior parties who did not consent to qualified acceptance are discharge.

Material alteration:-

Every party not consenting to a material alteration negotiable instrument is discharged.

Negotiation back:-

Where a party already liable on the negotiable instrument becomes the holder of negotiable instrument, such a party and all intermediate parties to whom such a party was previously liable shall be discharge.

Operation of law:-

*A party is discharged if the negotiable instrument becomes time barred.

*A party is discharged if he is declared as an insolvent by the court.

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BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

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