DISCHARGE OF A PARTYÂ Â {Sec. 82 to 90}
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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