Mrs Olde Died

Mrs. Olde died. Mr. Olde was treated by a psychiatrist, Dr. H, who advised him that part of his difficulty was his trying to make financial decisions that had previously been made by his wife. Upon Dr. H's advice, Mr. Olde contracted with Dr. H to examine his financial situation and to give Olde a letter advising him, in detail, what steps he should take with regard to 20 or so pressing business decisions. The Dr. H's fee for this service would be $2000. As agreed, Dr. H attended Mr. Olde's home one evening and examined all of his financial records. Olde issued a cheque payable to Dr. H for $2000, which was drawn on the Bank of Montreal, Austin Street branch. As promised, Dr. H's letter of advice was delivered on the following day-a one-paragraph letter in which all he advised was that Mr. Olde transfer his two income-producing properties into Dr. H's name so that he could "take care of things." Mr. Olde attended his bank immediately to stop payment on the cheque. Before he did, however, the psychiatrist had endorsed it over to his bank, the Royal Bank at 16th Avenue. On these facts, which one of the following is true?

A) Mr. Olde is the drawee of the cheque.
B) Because the parties deal with different banks, Mr. Olde would not have to pay the holder of the cheque because he can successfully argue breach of contract.
C) If Mr. Olde can prove undue influence was used by the psychiatrist, he will not have to pay the holder of the cheque.
D) The psychiatrist is the acceptor of the cheque.
E) Mr. Olde will have to pay the holder of the cheque because it is a holder in due course.