NI Act_Practicle Problems_13

When is an alteration made in negotiable instrument called ‘Material Alteration’? State with reasons whether there is any ‘Material Alteration’ in the following cases:

(i) the holder of a bill of exchange alters the date of the instrument to accelerate or prepone the time of payment;

(ii) the drawer of a bill exchange forgets to write the words, ‘or order’ on the bill. Subsequently, the holder of the bill of exchange inserts these words on the bill.