The destruction or mutilation of an instrument is considered cancellation, and thus discharges the liability of all parties, only if it is done with the intention of eliminating obligation on the instrument.

Question

Quizplus · Accepted Answer

The destruction or mutilation of an instrument is considered a form of cancellation only if it is done with the intent to discharge the obligation. Without this intent, the act does not legally cancel the obligation.

The Destruction or Mutilation of an Instrument Is Considered Cancellation