When a party that is pri?marily liable on an instrument pays to a holder the amount due in full, all parties to the instrument are discharged.

Question

Quizplus · Accepted Answer

When the party primarily liable on an instrument pays the amount due in full to a holder, it satisfies the obligation of all parties to the instrument, and they are discharged. This is known as the principle of discharge by payment. Therefore, option A is correct.

When a Party That Is Pri?marily Liable on an Instrument