An ordinary holder can recover nothing on an instrument that has been materially altered.

Question

Quizplus · Accepted Answer

According to the legal principle of material alteration, an instrument (such as a check or promissory note) is considered legally void if it has been materially altered without the consent of all parties involved. As a result, an ordinary holder (someone who acquires the instrument in good faith and for value, but has no special relationship with the parties involved) cannot recover any money or value from the instrument if it has been materially altered. The only exception is if the alteration was authorized or agreed upon by all parties involved, in which case the instrument can still be legally enforceable.

An Ordinary Holder Can Recover Nothing on an Instrument That