Question

Material alteration of an instrument means __________.

• A. alteration causing crossing of a cheque
• B. alteration which changes legal character of an instrument
• C. alteration which corrects a mistake
• D. all changes made in the instrument are material.

Answer 1

The correct option is B alteration which changes legal character of an instrument

Material alteration is any change in written instrument which makes it to speak different legal language from that of the original e.g. altering the date of instrument, altering sum payable, altering place of payment, altering time of payment. Any material alteration of a negotiable instrument renders the same

void as against anyone who is a party thereto at the time of making such alteration and does not consent thereto, unless it was made in order to carry out the common intention of the original parties.