Charles is the holder of a promissory note,the maker of which is Charles' niece,Margaret.As a birthday gift to Margaret,Charles marked "Canceled" across the face of the note.Margaret remains liable on the note because she did not give Charles anything of value for the cancellation.

Question

Quizplus · Accepted Answer

Margaret does not remain liable on the note because Charles' act of marking "Canceled" on the note as a gift constitutes a voluntary cancellation or release of the debt, which effectively discharges Margaret from her obligation, regardless of whether she gave anything of value for the cancellation.

Charles Is the Holder of a Promissory Note,the Maker of Which