New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    In which of the following conditions any material

    alteration of a negotiable instrument does not render the same void?
    A Alteration has defects Correct Answer Incorrect Answer
    B Alteration is in favour of all the parties Correct Answer Incorrect Answer
    C Alteration is via consent of all the parties Correct Answer Incorrect Answer
    D Alteration was made in order to carry out the common intention of the original parties Correct Answer Incorrect Answer

    Solution

    Section 87 of Negotiable Instrument Act-   Effect of material alteration.—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; Alteration by indorsee.—And any such alteration, if made by an indorsee, discharges his indorser from all liability to him in respect of the consideration thereof.

    Practice Next