The correct answer is: A. discharged.
When a party liable under a negotiable instrument makes payment in due course, the instrument is discharged. This means that the party who made the payment is no longer liable for the debt.
A negotiable instrument is a document that can be used to transfer money or property. It is a written promise to pay a certain amount of money to a specific person or entity. Negotiable instruments are often used in business transactions.
When a party makes payment in due course, they are fulfilling their obligation under the negotiable instrument. This means that the other party to the transaction is no longer entitled to payment. The instrument is then considered to be discharged.
There are a few things to keep in mind when making payment in due course. First, the payment must be made to the correct person or entity. Second, the payment must be made in full. Third, the payment must be made on time.
If a party fails to make payment in due course, they may be held liable for the debt. They may also be subject to penalties, such as interest and late fees.
Here is a brief explanation of each option:
- Option A: Discharged. When a party liable under a negotiable instrument makes payment in due course, the instrument is discharged. This means that the party who made the payment is no longer liable for the debt.
- Option B: Released. A party who is released from liability under a negotiable instrument is no longer responsible for paying the debt. This can happen if the party is discharged by the creditor, or if the creditor agrees to forgive the debt.
- Option C: Altered. A negotiable instrument is altered when someone changes the terms of the instrument without the consent of all parties involved. This can make the instrument invalid.
- Option D: None of these. None of these options are correct. The correct answer is A. Discharged.