The client owes an obligation to take worry from inside the doing their purchase so as to not mislead the bank otherwise assists forgery
- It has basically come acknowledged that they stand in a debtor-collector matchmaking.
- Where the financial gets deposits of cash throughout the customers. (Here the bank ’s the debtor of customers and must pay to your demand).
- In which the loans currency so you can escort girl Billings its customer. (Here, the banker is the creditor together with customers is the borrower).
In Foley lord Cottenham noted that the relationship is debtor-creditor rather than bailment. To this effect, the bank can utilise customer’s money without prior permission of the customer… subject to the condition that it shall be repaid on demand. The court in Joachimson V Swiss Bank Corporation followed the above position… Atkin J added that the bank should only pay on demand during working hours and in the branch of initial payment (technology now makes payment flexible). The debtor-creditor position has also been maintained in the following cases: Osawaye V National Provincial Bank Ltd; Carr V Carr; Sims V Bond, Yusuf V Co-operative Bank Ltd to mention a few.
Nothing question Lord Goddard immediately after said that alone one to possess money in a bank is the financial alone.
The client owes a duty to take proper care within the doing their buy whilst not to mislead the bank otherwise assists forgery
- Bailment: in which the financial welcomes an item (particularly certification) having safer custody.
- Agency: The bank is regarded as an agent where it collects cheques for and on behalf of its customers-Agbonmabe Bank V CFAO… Where it buys shares, treasury bills and the likes for and on behalf of its customers-Hall V Fuller.
- Fiduciary relationship: In Hedley Byrne V Heller and Partners Co, the court noted that the bank would be regarded as being in a fiduciary relationship where it gives advice to customers with the knowledge that it is being relied upon. A fiduciary duty may also be construed in other deserving circumstances.
- Trusteeship/Executorship: where bank executes another person’s will or perhaps is requested in order to provide trust property. New trusteeship/executorship relationship you are going to exist.
According to Lord Atkin in Joachimson V Swiss Bank Corporation; the bank undertakes to receive money and pay on demand while the customer on the other part should take care in executing his orders so as not to mislead the bank or facilitate forgery-.
The customer owes an obligation for taking worry inside the performing his buy in order not to mislead the bank otherwise assists forgery
- To collect deposits: of cash, valuables, cheques and the likes from, for and on behalf of customers-in Dike V ACB ltd, the bank was compelled to collect deposit from the customer being its duty.
- To pay on demand and honour customer’s cheques: Generally, a bank should not dishonour its customer’s cheque or demand (Conditions for a dishonour shall be discussed later). A wrongful dishonour ount to a breach of the contractual relationship-s entitling the customer to damages. In Roline V Steward, the court held that damages is presumed where the customer is a trader. In Ejimofor V UBN however, the court held that delay in payment without more would not amount to wrongful dishonour. In this case, the customer payee got impatient and left after waiting for several hours in the bank. The court held that the delay by the bank does not necessarily amount to a dishonour.
The duty to pay on demand does not prevent the bank from making enquiries and exercising due care and skill before making the payment-Karak Rubber co V Burden and Others.
The consumer owes an obligation when deciding to take proper care inside the performing his buy whilst not to ever misguide the financial institution or facilitate forgery
- Duty from privacy: to treat their customer’s recommendations and you can products since the private and you may strictly private. The right regarding confidentiality was kept by the Point 37 of your 1999 constitution subject to specific court justifications.