Which of the following actions by a holder constitutes the complete cancellation of a negotiable instrument?
A)intentionally destroying the negotiable instrument to eliminate obligation
B)deliberately striking out the signature of an indorser
C)releasing an obligor from liability
D)surrendering collateral without the consent of the parties who would benefit from it

Question

Quizplus · Accepted Answer

Intentionally destroying the negotiable instrument is the only option that would completely cancel the negotiable instrument and eliminate all obligations related to it. The other options may impact the validity or enforceability of the negotiable instrument, but they do not constitute complete cancellation.

Which of the Following Actions by a Holder Constitutes the Complete