A Holder in Due Course May Discharge the Liability of the Parties

question 35

Multiple Choice

A holder in due course may discharge the liability of the parties to the instrument by:

• A) publishing notice.
• B) canceling it.
• C) accidentally destroying it.
• D) paying for it even if it is a stolen one.

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Definitions:

Federal Government

The national government of a federal country, where powers are divided between the central authority and constituent political units.

First Amendment

A part of the U.S. Constitution that protects freedoms concerning religion, expression, assembly, and the right to petition.

Democratic Society

A society where power is held by the people, either directly or through elected representatives, ensuring freedoms and equality.

Profit Motive

The drive or incentive for individuals and businesses to achieve financial gain, often considered a fundamental principle of capitalism.