Where a fraudulent agent delivers bearer cheques to the intended payee named on the face of the cheque, the payee obtains title if it takes bona fide, without notice and for value, even though the agent's circumscribing condition (e.g., to invest for the true owner's benefit) was not complied with. No pre-existing contractual relationship between the true owner and the payee is required beyond that arising from the drawing of the cheque. A party who had title at the time of dealing cannot be made retrospectively liable in conversion by later avoidance of that title. The change of position defence does not rigidly require information from the payer — it requires that the change of position be on the faith of the receipt and its attendant circumstances.
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