Multiple choice

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

  1. Changing the date

  2. Changing the sum payable

  3. Crossing the instrument

  4. Changing the place of payment
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C Correct answer
Explanation

There is no material alteration in the following cases: (i) Correction of a mistake (ii) To carry out the common intention of the parties (iii) An alteration made before the instrument is issued and made with the consent of the parties (iv) Crossing a cheque (v) Addition of the words “on demand” in an instrument, where no time of payment is stated

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