What is material alteration as a universal defense to a negotiable instrument?
What will be an ideal response?
Universal defense is a defense that can be raised against both holders and HDCs. An instrument that has been fraudulently and materially altered cannot be enforced by an ordinary holder. Material alteration consists of adding to any part of a signed instrument, removing any part of a signed instrument, making changes in the number or relations of the parties, or completing an incomplete instrument without having the authority to do so. Under the Uniform Commercial Code (UCC) rule that words control figures, correcting the figure on a check to correspond to the written amount on the check is not a material alteration. If an alteration is not material, the instrument can be enforced by a holder for the original amount in which the drawer wrote the check.
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a. true b. false
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Indicate whether the statement is true or false