He never really intended to issue an BUT there is a presumption that the

instrument but he is issuing the cancellation is intentional and thus

instrument so that B can? What’s the the burden of proof lies with the
purpose why he needs the holder
instrument?

So that he can? So that he may use

NEXT instance which discharges the
it in entering into a contract
instrument
whatever it may be.
This refers to the modes of
But why did B pick A to do that? In
extinguishing a contract under the
order to borrow A’s credit standing
civil code
as A has better credit standing that
B. PALOREMECONO
When is the instrument discharged Payment, Loss of the thing due,
then? So the instrument is discharged Merger or Confusion, Remission or
if the accommodated party or his Condonation, Compensation,
agent pays the holder of the Novation
instrument for after all between A
and B it is B who is actually liable on ARFP
the instrument thus his payment
Annulment
discharges the instrument.
Rescission
BREAK
Fulfilment of resolutory condition
Another instance when an instrument
in discharged? Prescription

When there is intentional These modes can extinguish the

cancellation by the holder. liability under the NIL

It may happen by striking of Letter E of section 119 what does that

signature or by burning or by mean?
stamping cancelled on the face of
This simply refers to Merger, the
the instrument. However, the
holder and the person principally
cancellation must be intentional
liable on the instrument becomes
because a cancellation made
the same person
through a mistake or without the
authority of the holder is
INOPERATIVE
All of these grounds discharges the
instrument and as an effect it
discharges the principal debtor as
well as parties secondarily liable