Discharge by Cancellation or Renunciation

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Negotiable Instruments
  5. Discharge and Payment
  6. Discharge by Cancellation or Renunciation

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  1. A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument by (i) an intentional voluntary act such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge; or (ii) agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
  2. Cancellation or striking out of an indorsement pursuant to subsection (a) of this Code section does not affect the status and rights of a party derived from the indorsement.

(Code 1981, §11-3-604, enacted by Ga. L. 1996, p. 1306, § 3.)

RESEARCH REFERENCES

C.J.S.

- 10 C.J.S., Bills and Notes, § 231 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-604.

ALR.

- Right of maker to recover payment or overpayment made by mistake to transferee of paper in good faith, 41 A.L.R. 588.

Surrender (or indemnity in lieu thereof) of original instrument as condition of recovery upon new or renewal instrument, or surrender of new or renewal instrument as condition of recovery upon original, 129 A.L.R. 371.

What constitutes renunciation by surrender of negotiable instrument under UCC § 3-605, 96 A.L.R.3d 1144.

Unintentional cancellation of negotiable instrument under UCC Article 3, 59 A.L.R.4th 617.


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