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      Question

      Under Section 87, a material alteration of a negotiable

      instrument renders it:
      A Voidable at the option of the holder Correct Answer Incorrect Answer
      B Void as against anyone who was a party at the time of alteration and did not consent Correct Answer Incorrect Answer
      C Valid in all circumstances Correct Answer Incorrect Answer
      D Void only against the indorsers Correct Answer Incorrect Answer
      E Enforceable against the holder in due course alone Correct Answer Incorrect Answer

      Solution

      Section 87 provides that any material alteration of a negotiable instrument renders it void as against anyone who was a party at the time of making such alteration and who did not consent, unless the alteration was made to carry out the common intention of the original parties. An alteration made by an indorsee discharges his indorser from liability. The provision is subject to Sections 20, 49, 86 and 125.

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