Question

Which of the following is an example of material alteration in a negotiable instrument?

• A. Changing the data
• B. Changing the sum payable
• C. Crossing the instrument
• D. Changing the place of payment.

Answer 1

Answer: (C)

Crossing the 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.