Kennedy can be held liable Frazier. However, there has to be a claim made by Frazier that the status of a holder in due course is being enjoyed by Frazier. The rules of the Negotiable Instrument Act will be applicable in this situation. This is because there has to be the negotiable instrument endorsed by the endorser. The name of the endorser also has to be signed on the negotiable instrument. There has to be specific words like “without recourse” added to the signed negotiable instrument by the holder. If the check is taken by Frazier for value, there has to be the establishment of good faith to fulfil the criteria for becoming a holder in due course.