Jeff loans his childhood friend Dave $5,000.Dave gave Jeff a promissory note for $5,000.Jeff later tears up the note with the intent that Dave no longer owes him the money.Which of the following is true?

Question

Quizplus · Accepted Answer

A person entitled to enforce a negotiable instrument may discharge the liability of the parties to the instrument by canceling or renouncing it.If the holder mutilates or destroys a negotiable instrument with the intent that it no longer evidences an obligation to pay money,the holder has canceled it.

Jeff Loans His Childhood Friend Dave $5,000