A person entitled to enforce a negotiable instrument may not discharge the liability of the parties to the instrument by canceling or renouncing it.

Question

Quizplus · Accepted Answer

A person entitled to enforce a negotiable instrument can discharge the liability of the parties to the instrument by intentionally canceling it or renouncing their rights to it, as per the provisions of the Uniform Commercial Code (UCC) regarding negotiable instruments.

A Person Entitled to Enforce a Negotiable Instrument May Not