Brendan prepared a cheque payable to Joey and placed it in the pocket of his coat. Later in the day, while shopping, his coat was stolen. If Joey found Brendan's cheque by accident, and presented it for payment, Brendan might resist payment on the basis of lack of delivery.

Question

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For a cheque or any negotiable instrument to be valid, it must be delivered to the payee (in this case, Joey) by the maker (Brendan). If Brendan did not deliver the cheque to Joey intentionally and it was lost or stolen before Joey could lawfully acquire it, Brendan could argue that the cheque was never validly delivered to Joey, and thus resist payment on that basis.

Brendan Prepared a Cheque Payable to Joey and Placed It