Legal Aspects of Business (LAB)- Discharge of Negotiable Instrument- MBA
1. A Presentation on The
Legal Aspects of Business (18MS03T2)
3rd Unit: Negotiable Instruments Act, 1881
2nd Mid Topic: Discharge of Negotiable Instruments
As a part of 3rd semester Curriculum Submission to
The Department of Management Science
of
Sasi Institute Of Technology & Engineering (Autonomous),
SITE
Submitted by :
Immani.Chandra Shekar
(Reg. No: 19K61E0020)
Under the Guidance of :
Mr. Neelapala Venkat Sir
Assistant Professor
2. Discharge of a contract means termination of the contractual relationship
between the parties. A contract is discharged when rights and obligations
created by it comes to an end.
Discharge of Negotiable Instruments:
Negotiable instruments:
Negotiable instrument is a document which entitles a person to a sum of
money and which is freely transferable from one person to another by mere
delivery or by endorsement and delivery.
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3. When A Negotiable Instruments Does Gets Discharged?
The term 'discharge' in relation to a negotiable instrument is used in two
senses, viz.
A. Discharge of the instruments, (u/s 81)
B. Discharge of one or more of the parties from their liability on the
instruments: (u/s 82-90)
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4. "Delivery of Instrument on Payment, or Indemnity In Case of Loss"
Mode of Discharge of An Instruments: are as follows
By payment in due course
By cancellation
By discharge as a simple contract
By express waiver
By Primarily liable becoming a holder
1.Discharge of an Instruments u/s 81:
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5. 2.Discharge of one or more of the parties from their liability on the
instruments: (U/S 82-90)
A party or parties to a negotiable instruments are discharged in any one of
the following ways:
By payment
By cancellation
By holder can release i.e. any party to the instruments by any method
other than cancellation
By allowing drawee more than 48 hours
By non-presentment of cheque
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6. By Parties not consenting, but discharged by qualified acceptance from
holder U/s 86
By operation of law :
By an order of Insolvency given by Court
By merger
By lapse of time
By material alteration
By Delay in presenting cheque
By not giving notice of dishonour
By drawing draft by one branch on another 5