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What Will Operate to Dis Charge the Liability of Parties to a Bill or Note

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WHAT WILL OPERATE TO DIS CHARGE THE LIABILITY OF PARTIES TO A BILL OR NOTE. By discharge of a bill is meant the extinguishment of rights of action on it. It then ceases to be negotiable, and its transfer can only operate as a new contract between the trans feror and transferee. (Eaton v. McKown, 34 Me., 510.) The law governing the question of discharge is that of the place where the party sought to be charged became a party to the instrument. Thus where a bill was drawn and issued in the United States on a party in England and dishonored, it was held that the drawer could not be sued in England because he had been discharged in America as a bankrupt. (Potter v. Brown, 5 East, 124.) A bill is discharged by payment in due course (Ante, Secs. 829-832); by part payment in due course the bill will be discharged pro tante (Corn. Bank v. Cunningham, zo Pick., 275); by the acceptor becoming the holder after maturity in his own right (Hall v. Kimball, 77 Ill., 161; Mitchell v. Rice, 6 J. J. Marsh, 625); by the holder renouncing absolutely and unconditionally after maturity his rights against the acceptor (Larkin y, Hardenbrook, 90 N. Y., 333). So where the holder intentionally strikes out or cancels a signature of a party, such party is thereby discharged. (Brett v. Marston, 45 Me., 401.)

party and discharged