When the drawee of an unaccepted draft or check pays to a holder the amount due in full, all parties to the instrument are discharged.

Name: When the drawee of an unaccepted draft or check pays to a holder the amount due in full, all parties to the instrument are discharged.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the drawee pays the amount due in full to the holder, it is considered as payment in full, and all parties to the instrument, including the drawer and the endorser, are discharged from any liability related to the instrument.

When the Drawee of an Unaccepted Draft or Check Pays