A holder in due course may discharge the liability of the parties to the instrument by:
A) publishing notice.
B) canceling it.
C) accidentally destroying it.
D) paying for it even if it is a stolen one.

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 the obligation.

A Holder in Due Course May Discharge the Liability of the Parties