Which of the Following Circumstances Does Not Discharge a Party's

question 6

Multiple Choice

Which of the following circumstances does not discharge a party's liability for a negotiable instrument?

• A)Cancelation or renunciation by the holder.
• B)Presentment.
• C)Impairment of collateral.
• D)Payment or tender of payment
• E)Reacquisition.

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Definitions:

Contracts

Legally binding agreements between two or more parties that establish obligations which are enforceable by law.

Intended Beneficiary

An intended beneficiary is a person or entity that a contract explicitly states will benefit from its execution or terms.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, although the benefit was not the reason the contract was formed and does not have rights to enforce the contract terms.

Courts

The institutions where legal disputes are heard and decided by a judge or a jury, ranging from local to federal levels.