All parties are discharged from liability on a negotiable instrument when ________.
A) the instrument is presented for payment
B) the signature of the indorser is intentionally struck out
C) the instrument is accidentally destroyed or mutilated
D) a drawee in good faith pays an unaccepted instrument in full to the holder

Question

Quizplus · Accepted Answer

When a drawee in good faith pays an unaccepted instrument in full to the holder, all parties are discharged from liability because the obligation on the instrument has been fulfilled.

All Parties Are Discharged from Liability on a Negotiable Instrument