Lack of Delivery Morse wrote out a check payable to the order of Smith, intending to give it to Smith after Smith had completed a certain amount of work. Smith discovered the check on Morses desk and took it without doing any work at all. Smith was not entitled to the check; however, if she negotiated the check to a bank, store, or private party for value, in good faith, and without notice (a holder in due course), Morse would have to honor the check even though Smith failed to do the r e quired work.