Mr Olde Died

Mr. Olde died. Mrs. Olde was treated by a psychiatrist who advised her that part of her difficulty was her trying to make financial decisions that had previously been made by her husband. Upon his advice, she contracted with him to examine her financial situation and to give her a letter advising her, in detail, what steps she should take with regard to twenty or so pressing business decisions. His fee would be $2,000. As agreed, he attended her home one evening and examined all the financial records. She issued a cheque payable to him for $2,000; the cheque was drawn on the Bank of Montreal, Austin Street branch. As promised, his letter of advice was delivered on the following day--a one-paragraph letter in which all he advised was that she transfer the two income-producing properties into his name so that he could "take care of things for you." Mrs. Olde attended her bank immediately to stop payment on the cheque. Before she did, however, the psychiatrist had endorsed it over to his bank, the Royal Bank at Cambie and 16th Avenue. On these facts, which one of the following is true?

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