Section 38
Section 38
Any person against whom a written instrument is void or voidable, who has reasonable apprehension that such instrument, if left outstanding, may cause him serious injury, may sue to have it adjudged void or voidable, and the court may, in its discretion, so adjudge it and order it to be delivered up and cancelled.
If the instrument has been registered under any law in force for the time being relating to the registration of documents, the court shall also send a copy of its decree to the officer in whose office the instrument has been so registered; and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.
Illustrations
(a)
A., the owner of a ship, by fraudulently representing her to be seaworthy, induces B., an underwriter, to insure her. B. may obtain the cancellation of the policy.
(b)
A. conveys land to B., who bequeaths it to C. and dies. Thereupon D. gets possession of the land and produces a forged instrument stating that the conveyance was made to B. in trust for him. C. may obtain the cancellation of the forged instrument.
(c)
A. agrees to sell and deliver a ship to B., to be paid for by B.’s acceptances of four bills of exchange, for sums amounting to $30,000 to be drawn by A. on B. The bills are drawn and accepted, but the ship is not delivered according to the agreement. A.
sues B. on one of the bills. B. may obtain the cancellation of all the bills.
What instruments may be partially cancelled.