Module: General Practice
Q80: A "Material Alteration" renders a negotiable instrument void under Section 87. Which of the following changes is NOT considered a Material Alteration?
✅ Correct Answer: C
A "Material Alteration" is any change that alters the legal character or liabilities of the parties.
Section 87 states that such alterations void the instrument.
Common examples include changing the date, amount, or payee.
However, Section 125 explicitly permits certain alterations, considering them "authorized." Crossing a cheque (adding two parallel lines) is a safety measure that restricts how the money is collected (via a bank account only). Since this promotes security and does not prejudice the drawer's liability, the Act treats it as a non-material (valid) alteration.
Section 87 states that such alterations void the instrument.
Common examples include changing the date, amount, or payee.
However, Section 125 explicitly permits certain alterations, considering them "authorized." Crossing a cheque (adding two parallel lines) is a safety measure that restricts how the money is collected (via a bank account only). Since this promotes security and does not prejudice the drawer's liability, the Act treats it as a non-material (valid) alteration.