Negodischarge of Inst

7/26/2019 Negodischarge of Inst

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DISCHARGE OF A

NEGOTIABLE INSTRUMENTS

Section 119 TO Section 125

GIGI RUIZ TICAR


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Sec. 119 Inst!"ent #o$ %isc#&'e% (


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Discharge of an instrument "e&ns& e)e&se o* &)) t#e +&ties $#et#e

+i"&, o secon%&, )i&-)e *o" t#eo-)i'&tions &isin' t#ee!n%e.

Requisites to discharge instrument

by payment by principal debtor/It "!st -e "&%e /

&0 -, o on -e#&)* o* t#e +inci+&)

%e-to-0 &t o &*te its "&t!it,

c0 to t#e #o)%e t#eeo*

%0 in 'oo% *&it# &n% $it#o!t notice t#&t


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4&,"ent -, &cco""o%&te% +&t, is

+&,"ent -, t#e +inci+&) %e-to.

To eect %isc#&'e o* inst!"ent

t#e c&nce))&tion "!st/&0 Be intention&)), %one

-0 B, t#e #o)%e t#eeo*.

Note/ C&nce))&tion ", -e %one -, $itin't#e $o% 6c&nce))e%7 o 6+&i%7 on t#e*&ce o* t#e inst!"ent.


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An, &ct $#ic# %isc#&'es & cont&ct

At 1281 o* t#e Ci3i) Co%e +oo3i%es/

6O-)i'&tions &e etin'!is#e%/

1. B, +&,"ent o +e*o"&nce

2. B, t#e )oss o* t#e t#in' %!e

8. B, t#e con%on&tion o e"ission o*%e-ts

:. B, con*!sion o "e'e5. B, co"+ens&tion &n%

;. B, no3&tion.


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Re&c

c0 &*te t#e %&te o* "&t!it,.

Note/ In #is o$n i'#t "e&ns not in &e+esent&ti3e c&+&cit,


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Section 12= ( >#en +eson secon%&i), )i&-)e on t#e inst!"ent &e %i


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Disc#&'e -, o+e&tion o* )&$ is not

inc)!%e%1. Disc#&'e -, e&son o* -&n?!+tc,

2. Disc#&'e o* & +&t, not 'i3en %!e

notice o* %is#ono8. Disc#&'e -, t#e st&t!te o*

)i"it&tions

Note/ Re)e&se o* t#e +inci+&) %e-to"!st -e -, t#e &ct o* t#e #o)%e &n%not -, o+e&tion o* )&$.


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Release of principal debtor by act of holder

E&"+)e/

S!++ose M is t#e "&?e o* &n inst!"ent+&,&-)e to t#e o%e o* 4 $#o in%ose% it to A -,A to B &n% -, B to C t#e +esent #o)%e.

I* C e)e&ses M t#e "&?e 4 A &n% B t#e+esons secon%&i), )i&-)e &e )i?e$ise%isc#&'e%. B!t i* C in e)e&sin' M e+ess),ese3e% #is i'#t &'&inst t#e +&ties secon%&i),

)i&-)e t#en t#e, &e not %isc#&'e%. B, s!c#ese3&tion t#e i'#t o* eco!se o* 4 A &n% B&'&inst M &e &)so ese3e%.


10/26

Extension of Time

I* t#e #o)%e &'ees to eten% t#eti"e o* +&,"ent t#e in%oses &e%isc#&'e%.

Ho$e3e $#ee t#e etension o*ti"e is consente% to -, t#e +&t,secon%&i), )i&-)e #e is not%isc#&'e%. A)so $#ee t#e #o)%e

e+ess), ese3es #is i'#t o*eco!se &'&inst t#e +&t,secon%&i), )i&-)e. T#e )&tte is not

%isc#&'e%.


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Sec 121. Ri'#t o* +&t, $#o %isc#&'es inst!"ent.


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Ece+tion to t#e i'#t to e@ne'oti&te/


13/26

Section 122. Ren!nci&tion -, t#e #o)%e.


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T#e en!nci&tion "!st -e "&%e /

B, & $itten %ec)&&tion I* o&) it s#o!)% -e &cco"+&nie% -, &

s!en%e o* t#e inst!"ent to t#e+eson +i"&i), )i&-)e

Note/ Mee e+ession o* &n intention o%esie to eno!nce is not eno!'#.

Ren!nci&tion c&n -e "&%e -e*oe"&t!it, &t "&t!it, o &*te"&t!it,.


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>#en en!nci&tion %isc#&'es &n inst!"ent


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Sec 128 C&nce))&tion Unintention&) B!%en o* +oo*.


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>#en c&nce))&tion is ino+e&ti3e/


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Sec 12:. A)te&tion o* inst!"enteect o*.

M&tei&) &)te&tion is %ene% to -e&n, c#&n'e in t#e inst!"ent $#ic#

&ects o c#&n'es t#e )i&-i)it, o*t#e +&ties in &n, $&,.

Re*es to +#,sic&) &)te&tion o* t#e

inst!"ent. Hence &n etension o*ti"e 'i3en -, t#e #o)%e o* & note$it#o!t consent is not &)te&tion.


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Eect o* &)te&tion o* &n inst!"ent/

1.0 A)te&tion -, & +&t, ( t#e eect o*

&)te&tion -, t#e #o)%e is to %isc#&'e t#einst!"ent &n% &)) +io +&ties $#o %i% not'i3e t#ei consent to s!c# &)te&tion.

2.0 A)te&tion -, & st&n'e ( &)so c&))e%

s+o)i&tion no eect on t#e inst!"ent i* t#eoi'in&) "e&nin' c&n -e &scet&ine%

80 Ri'#t o* & #o)%e in %!e co!se (A"&tei&) &)te&tion &3oi%s t#e inst!"ent in

t#e #&n%s o* one $#o is not & #o)%e in %!eco!se &s &'&inst &n, +io +&t, $#o #&snot &ssente% to t#e &)te&tion.


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Example:

M "&?es & +o"isso, note *o 48===

+&,&-)e to 4 o o%e. 4 ne'oti&tes t#enote to A $#o $it# t#e consent o* 4&ises t#e &"o!nt to 4=== &n%t#ee&*te in%oses it to B B to C &n% Cto D !n%e cic!"st&nces t#&t D is not o)%e in %!e co!se.

Is M t#e "&?e %isc#&'e

C&n D en*oce it &'&inst M I* D $&s & #o)%e in %!e co!se c&n #e

en*oce it &'&inst M


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Sec. 125. >#&t constit!tes & "&tei&)&)te&tion.

&. D&te

-. S!" +&,&-)e

c. Ti"e o* +&,"ent %. 4)&ce o* +&,"ent

e. N!"-e o e)&tions o* t#e +&ties

*. Me%i!" o c!enc, o* +&,"ent '. ot#e &)te&tions.


22/26

An, c#&n'e &%%ition s!-stit!tion o

e&s!e $#ic# &)tes t#e eect o* t#einst!"ent is & "&tei&) &)te&tion.

D&te ( i.e. +ost+one"ent o* ti"e o*

+&,"ent c#&n'e o* %&te in $#ic#inteest is to !n.

S!" +&,&-)e ( i.e. c#&n'e in t#e

&"o!nt o* inteest $#et#e to e%!ceo ince&se

Ti"e o* +&,"ent ( i.e. c#&n'e in t#e"&t!it, o* t#e inst!"ent


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4)&ce o* +&,"ent ( i.e. c#&n'e t#e +)&ce o*+&,"ent o inset & +)&ce o* +&,"ent $#ee

none is s+ecie%.

N!"-e o e)&tions o* t#e +&ties ( i.e.&%%ition o* & co@"&?e

Me%i!" o c!enc, o* +&,"ent ( i.e. C#&n'ein t#e c!enc, in $#ic# +&,"ent is to -e"&%e -, insetion o* t#e $o%s 6 in c!ent*!n%s7 on 6in 'o)% coins7

Ot#e &)te&tions ( i.e. s!-stit!tion o* t#e $o%6 o -e&e7 to 6 o o%e7 $itin' t#e $o%s6+otest $&i3e%7 &-o3e & -)&n? in%ose"ent.


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E&"+)e/

A iss!e% & +o"isso, note in t#e &"o!nt

o* 41==== +&,&-)e to t#e o%e o* B+&,ee. B ne'oti&te% to C $#o con3ince% Bt#&t #e -e &))o$e% to c#&n'e t#e &"o!ntto 4:==== so #e c&n +&, #is %e-ts to D.

T#ee&*te C ne'oti&te% to D D to E#o)%e.

C&n E 'o &'&inst D

C&n E 'o &'&inst C

C&n E 'o &'&inst B

C&n E 'o &'&inst A


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S!++ose on t#e s&"e e&"+)e t#e

inst!"ent is & -i)) o* ec#&n'e &n%t#e -i)) is &%%esse% to &s %&$ee.

Is %&$ee )i&-)e

S!++ose &cce+ts is &s &cce+to)i&-)e I* so *o #o$ "!c# I* not$#, not


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THANK YOU

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