CANCELING (Let. ennrelli, lattice-work). The nxtinguishment of the rights or obligations created by a written instrument by olditerating or destroying the instrument itself. Originally the efficacy of the ad depended on a strict (.0111 pH:imp with the prescribed form of drawing transverse lines over the face of the document: but at the present time any mark or •riting as the word 'canceled' indorsed on the back thereof—dearly showing the intention of the parties is equally valid. In general, the de struction, obliteration. or marking of an instru ment creating property rights, whether acci dentally or with the intention of canceling it. will not have the legal effect of the rights or obligations created by it. Thus. the destruction of a deed by which real prop erly has been conveyed will not operate to di vest the title of the grantee and revest it in the grantor. The title, having passed by the deed, can be restored to the former owner only by another deed. So the tearing or obliterating of a written lease by the parties thereto will not have the effect of terminating the subsisting relation of landlord and tenant, as this can only be effected by a surrender made in writing or otherwise, as prescribed by law. The only ex ception to this rule is e.lieu the cancellation of • an instrument—as a deed or letters patent—is ordered by a court or other competent authority for fraud or mistake, or because the instru ment—a mortgage, for example—has answered its purpose and is entitled to be dischargd.
The case of a which may be canceled the maker at his pleasure. is not a real excep tion to the rule, as a will does not go into effect and create property rights until the death of the testator. See LETTERS PATENT: FRAUD; MISTAKE: WILL.
Instnunents creating mere contract rights, whether under seal or not—as written agree molts for services or for the sale of goods, notes, and bills of exchange. and the like—may. on the other hand, usually be canceled by the parties thereto. Even where such contracts are required by law to he in writing. they are capable of being revoked by viral; and tile cancellation of the instrument operates as a revocation or re scission of the contract, if made with that in tention. Bonds Were. and, to a certain extent. still are. instruments of a peculiar nature. and are considered as comprehending within them selves all of the rights and obligations de scribed in them. Even the :ie•idental loss or destruction of such an instrument rendered it unenforceable at common law. %Nide this is generally no longer true, it may always be ex tinguished by cancellation. See CONTRACT: BOND: DEED: and compare ALTERATION and SPOLIATION.