The term discharge means release. The term discharge is used in two terms viz (i) Discharge of a negotiable instrument; (ii) discharge of one or more or all the Parties from liabilities thereof.
(i) Discharge of a negotiable instrument :- A Negotiable Instrument is said to be discharge when all rights of action under it come to an end as a result of which, it ceases to be negotiable.
(ii) Discharge of one or more or all the Parties from liabilities:- A Party may be discharged from liability; however, the instrument thereby is not discharged; it may still continue to exist and be negotiable and the other parties continue to be liable for it.
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