Professional Documents
Culture Documents
The person making the payment is entitled to have the instrument delivered back to him
upon payment or if the instrument is lost or cannot be produced, to be indemnified
against any further claim thereon against him. Moreover, in order to discharge a
negotiable instrument by payment-in-due-course, the payment should be made by the
party who is primarily liable on the instrument. So if a party, who is not primarily liable,
makes payment, the instrument is not discharged. The payment-in-due-course
discharges not only the negotiable instrument in question but also the parties who are
primarily and ultimately liable on the instrument as well.
https://accountlearning.com/discharge-of-a-negotiable-instrument/ 1/3
4/16/2018 How are negotiable instruments discharged?
https://accountlearning.com/discharge-of-a-negotiable-instrument/ 3/3