Mary buys a car from Fred. She pays with a cheque. Fred endorses the cheque over to Jane. Mary discovers the car Fred sold her needs major repairs even though Fred told her the work had been done. Can Jane cash the cheque? Yes, because a cheque can always be cashed by anyone if it has been signed by the account holder No. Because Mary has a defense of fraud against Fred, she also can prevent Jane from cashing the cheque. No. Negotiable instruments cannot be transferred to a third party. Yes, because the cheque is endorsed and she is a holder in due course No. Because Jane is connected to Fred, she is considered a party to the fraud and cannot benefit from Fred's wrongdoing.