Multiple choice

Which of the following is not an example of material alteration as per Section 98 of the Negotiable Instrument Act, 1881?

  1. Alteration of the date of instrument

  2. Alteration of the sum payable

  3. Alteration in the time of payment

  4. Crossing of instrument
Reveal answer Fill a bubble to check yourself
D 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 an instrument is issued and made with the consent of the parties (iv) Crossing of instrument (v) Addition of the words “on demand” in an instrument where no time of payment is stated

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