A party indorses a negotiable instrument. It is later materially altered without that party's consent,…
Section 87 makes the materially altered instrument void against a party who was already a party and did not consent. The section excepts alterations made to carry out the…
Choose your answer
A party indorses a negotiable instrument. It is later materially altered without that party's consent, and the change does not carry out the original parties' common intention. Under section 87 of the Negotiable Instruments Act, 1881, what is the effect against that party?
Answer and explanation
Correct answer B
Section 87 makes the materially altered instrument void against a party who was already a party and did not consent. The section excepts alterations made to carry out the original parties' common intention. The question specifies a subsequent alteration and excludes that exception.
Option feedback
Option A
Section 87 specifies voidness against the affected party.
Option B
A nonconsenting party bound before the change is protected by the statutory rule of relative voidness.
Option C
The party's pre-alteration signature does not bind that party on the materially altered terms.
Option D
Good faith by itself is no exception for the facts given.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
UGC NET Law
Subject revision
See pack details on LawMint.net -
Rajasthan Judicial Services
-
CUET PG Law (LL.M.)
Subject revision