Describe four ways through which a bill of exchange could be discharged
Ways through which a bill of exchange could be discharged
- Payment in due course if the bill is paid by or on the behalf of the acceptor at or after maturity, it is discharged and parties freed.
- Acceptor: holder maturity (merger): if the acceptor of the bill becomes a payee of right, at or after maturity the bill is discharged.
- Renunciation of waiver: under section 62 (1) of the Act ,if the holder of a bill at or after maturity unconditionally and absolutely renounced his rights against the acceptor the bill is discharged, the renunciation must be written and the bill returned to the acceptor.