Section 63Part 2 — Bills of Exchange
Cancellation
←→ Navigate · Click subsection badges to collapse · Press ? for help
Where the bill is intentionally cancelled by the holder or the holder’s agent, and the cancellation is apparent thereon, the bill is discharged.
In like manner, any party liable on a bill may be discharged by the intentional cancellation of the party’s signature by the holder or the holder’s agent. In such case any indorser who would have had a right of recourse against the party whose signature is cancelled is also discharged.
A cancellation made unintentionally, under a mistake or without the authority of the holder is inoperative; but where a bill, or any signature thereon, appears to have been cancelled, the burden of proof lies on the party who alleges that the cancellation was made unintentionally, under a mistake or without authority.