Where a finance company draws a cheque payable to an intended payee as part of a fraudulent scheme by a third party, and the payee receives the cheque in good faith believing it to be payment of an existing debt, the payee obtains a voidable title that cannot be rescinded if rescission would prejudice the payee's rights acquired in good faith and for value. The defence of change of position is available where the payee, acting on the faith of the receipt, disbursed the funds to the fraudster in circumstances where the belief in entitlement was induced by the payer's own conduct.
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