Where a finance company's cheque is endorsed by a supplier to a fraudulent third party without any underlying order for goods, the finance company may recover against the supplier on the basis of both conversion (the supplier's voidable title being avoided by commencement of proceedings) and unjust enrichment, even where no contract existed between the finance company and the supplier. Payments received from the fraudulent party under the finance agreements must be credited against the amount recoverable.
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