In which of the following situations is the obligor not likely to be fully discharged from his or her liability on a negotiable instrument?
A)Jerry wrote a check to Elaine.Elaine cashes the check later.
B)Edward lends Monica $1,000 toward her college expenses.She gives Edward a promissory note for $1,000,which Edward accidentally tears up.
C)On June 1,2002,Kim receives a draft from Kurt payable on July 1,2002.Kurt then pays her in cash and cancels the draft.
D)John fraudulently increases the amount due on the check from Bruce.

Question

Quizplus · Accepted Answer

An accidental destruction or mutilation of a negotiable instrument is not a cancellation and does not discharge the parties to it.

In Which of the Following Situations Is the Obligor Not