A promisory note was made without mentioning any time for payment . The holder added the words on demand on the face of the instrument .state whether it amounted to material alteration

'On Demand' is the time off payment. The issuer can demand payment anytime anywhere. Cannot be altered, payee by signing has agreed to those terms.

Yes it is a material alteration and invalid unless the borrower initialed it.

... .state whether it amounted to material alteration

Is this homework? :)


Yes it is a material alteration and invalid unless the borrower initialed it.

If no terms of payment were mentioned at first, it is a demand note anyway. So the notation "on demand" was redundant. I don't think this redundant notation invalidates the note.

I think any promissory note without terms is a demand note - payable upon demand.