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

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8. Department of Management Science
Thank You Sir
2020-2021
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