Section 86 - Parties not consenting discharged by qualified or limited accept­ance - Negotiable Instruments Act, 1881

Parties not consenting discharged by qualified or limited accept ance. 86 . If the holder of a bill of exchange acquiesces in a qualified acceptance, or one limited to part of the sum mentioned in the bill, or which substitutes a different place or time for payment, or which, where the drawees are not partners, is not signed by all the drawees, all previous parties whose consent is not ob tained to such acceptance are discharged as against the holder and those claiming under him, unless on notice given by the holder they assent to such acceptance. Explanation : An acceptance is qualified— ( a ) where it is conditional, declaring the payment to be dependent on the happening of an event therein stated; ( b ) where it undertakes the payment of part only of the sum order to be paid; ( c ) where, no place of payment being specified on the order, it undertakes the payment at a specified place, and not otherwise or elsewhere; or where, a place of payment being speci fied in the order, it undertakes the payment at some other place and not otherwise or elsewhere; ( d ) where it undertakes the payment at a time other than that at which under the order it would be legally due.