Generally,all parties to a negotiable instrument are discharged from liability if (1)the party primarily liable on the instrument pays it in full to the holder of the instrument,or (2)a drawee in good faith pays an unaccepted draft or check in full to the holder.

Question

Quizplus · Accepted Answer

This statement is true according to the rules of negotiable instruments. If the party primarily liable pays the instrument in full or a drawee pays an unaccepted draft or check in good faith to the holder, then all parties are discharged from liability.

Generally,all Parties to a Negotiable Instrument Are Discharged from Liability