Sec. 3102. Change In Negotiability
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This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Sec. 3102. Change In Negotiability
Any modification of the terms of a written instrument which affects its negotiability, amounts to a material alteration.1 The most common form of alteration of this sort is the alteration which changes a non-negotiable contract into a negotiable contract. Alteration of this sort is always regarded as material.2 Adding the words "or order"3 or the words" or bearer" 4 to the name of the payee of an instrument which
4 Hoopes v. Collingwood, 10 Colo.. 107, 3 Am. St. Rep. 565, 13 Pac. 909; Derr v. Keaough, 96 la. 307, 65 N. \V 330; New York Life Insurance Co. v. Martindale, 75 Kan. 142, 121 Am. St. Rep. 362, 21 L. R. A. (N.S.) 1045, 88 Pac. 550; Draper v. Wood, 112 Mass. 315, 17 Am. Rep. 02.
5 Farmers' & Merchants' National Bank v. Novich, 80 Tex. 381, 34 S. W. 014.
6 Bowman v. Mitche'l. 79 Ind. 84; Jones v. Bangs, 40 O. S. 139, 48 Am. Pep. 664; Gettysburg National Bank v. Chiaolm, 160 Pa. St. 564, 47 Am. St.
Rep. 020, 32 Atl.700; McVoy v. Fly, 73 Tenn. (3 Lenn 434.
7 Moore v. Hutchinson. 69 M 420.
8 Schroyer v. Thompson, 262 Pa. St. 282, 105 Atl 274.
9 Harsh v. Klepper, 28 O. S. 200.
10 New York Life Insurance Co. v. Martindale, 75 Kan. 142, 121 Am. St. Pep. 362, 21 L. R. A. (N.S.) 1045, 88 Pac. 550.
11 Patterson v. McNeely. 16 O. S. 348 12 Leonard v. Phillips, 30 Mich. 182. 1 Canada. Bank v. Wharton, 27 N.
S. 67.
Delaware. Hollis v. Vandegrift, 5 Houst. (Del.) 521.
Georgia. Scott v. Walker, Dudley (Ga ) 243; McCauley v. Gordon, 64 Ga. 221, 37 Am. Rep 68; Burch v. Daniel, 101 Ga. 228, 28 S. E. 622.
Iowa. Needles v. Shaffer, 60 la. 65; Builders' Lime & Cement Co. v. Weimer, 170 la. 444, 151 N. W. 100.
Kentucky. Johnson v. Bank, 41 Ky. (2 B. Mon.) 310; Harrison v. Union Store Co., 179 Ky. 672, 201 S. W. 31.
Maine. Crosewell v. Labree, 61 Me. 44, 10 Am. St. Rep. 238, 16 Atl 331.
Massachusetts. Belknap v. Bank, 100 Mass. 376, 97 Am. Dec. 105.
Michigan. Rawson v. Davidson, 49 Mich 607, 14 N. W. 565; Toledo Scale Co. v. Gogo, 186 Mich. 442, 152 N. W. 1046.
Mississippi. Simmons v. Atkinson, 60 Miss. 862, 23 L. R. A. 509, 12 So. 263.
Nebraska. Walton Plow Co. v. Campbell, 35 Neb. 173, 16 L. R. A. 46S, 52 N. W. 883.
New Hampshire. Haines v. Dennett, 11 N. H. 180.
New York. Booth v. Towers, 56 N. Y. 22.
Ohio. Marshall v. Wilhite, 4 O. C. C. 203, 2 O. C. D. 500.
South Carolina. Pepoon v. Stagg, 1 Nott & McC. (S. Car.) 102; First National Bank v. Wood, 109 S. Car. 70, L. R. A. 1918D, 1061, 95 S. E. 140.
Tennessee. McDaniel v. Whitsett, 96 Tenn. 10, 33 S. W. 567.
Texas. Taylor v. Moore (Tex.), 20 S. W. 53.
Wisconsin. Union National Bank v. Roberts, 45 Wis. 373.
2 Delaware. Hollis v. Vandegrift, 5 Houst. (Del.) 521.
Georgia. Scott v. Walker, Dudley (Ga.) 243; McCauley v. Gordon, 64 Ga. 221, 37 Am. Rep. 68; Burch v. Daniel 101 Ga. 228, 28 S. E. 622.
Iowa. Builders' Lime & Cement Co. v. Weimer, 170 la. 444, 151 N. W. 100
Kentucky. Johnson v. Bank, 41 Ky. (2 B. Mon.) 310; Harrison v. Union Store Co., 179 Ky. 672, 201 S. W. 31.
Maine. Croswell v. Labree, 81 Me. 44, 10 Am, St. Rep. 238, 16 Atl. 331.
Michigan. Toledo Scale Co. v. Gogo, 186 Mich. 442, 152 N. W 1046.
Mississippi. Simmons v. Atkinson, 69 Miss. 862, 23 L. R. A. 599, 12 So. 263.
Nebraska. Walton Plow Co. v. Campbell, 35 Neb. 173, 16 L. R. A. 468, 52 N. W. 883.
New Hampshire. Haines v. Dennett, 11 N. H. 180.
South Carolina. Pepoon v. Stagg, 1 Nott. & McC. (S. Car.) 102; First National Bank v. Wood, 10?) S. Car. 70, L. R. A. 1918D, 1061, 95 S. E. 140.
Tennessee. McDaniel v. Whitsett, 06 Tenn. 10, 33 S. W. 567.
Texas. Taylor v. Moore (Tex.), 20 S. W. 53.
Wisconsin. Union National Bank v. Roberts. 45 Wis 373.
3 Delawarc. Hollis v. Vandegrift, 5 Houst. (Del.) 521.
Georgia. Burch v. Daniel, 101 Ga. 228, 28 S. E. 622.
Kentucky. Johnson v. Bank, 41 Ky. (2 B. Mon.) 310.
Hew Hampshire. Haines v. Dennett, 11 N. H. 180.
South Carolina. Pepoon v. Stagg, 1 Nott. & MeC. (S. Car.) 102.
Texas. Taylor v. Moore (Tex.), 20 S. W. 53.
4 Georgia. Scott v. Walker, Dudley (Ga.) 243; McCauley v. Gordon, 64 Ga. 221, 37 Am. Rep. 68.
Iowa. Builders' Lime & Cement Co. v Weimer, 170 la. 444, 151 N. W. 100.
Kentucky. Johnson v. Bank, 41 Ky (2 B Mon.) 31C.
thereby is made negotiable, or changing the words "or order" to "or bearer,"5 or inserting "jointly and severally"6 are material alterations.
From the nature of the case, alteration which changes a negotiable instrument into a non-negotiable instrument, is much rarer; but alteration of this sort has been held to be material.7
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