Cancellation of a negotiable instrument may be accomplished by the holder's destruction or mutilation of the instrument with the intent of eliminating the obligation.

Question

Quizplus · Accepted Answer

Cancellation of a negotiable instrument can be done by the holder through destruction or mutilation of the instrument, provided the intention is to eliminate the obligation. However, the holder should also notify all other parties involved in the transaction about the cancellation.

Cancellation of a Negotiable Instrument May Be Accomplished by the Holder's