V</u> Hill, the appellant claimed that his bank should render accounts and profits on how his money was being used
The client owes an obligation for taking care for the carrying out their purchase whilst not to ever mislead the bank or helps forgery
- It has essentially started recognized that they stand-in a debtor-collector relationship.
- The spot where the bank get places of money on the consumer. (Here the lending company is the borrower of your customer and must spend on the consult).
- In which the bank loans currency so you’re able to the buyers. (Here, the new banker ‘s the collector while the customer ‘s the debtor).
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 escort in Antioch CA V Carr; Sims V Bond, Yusuf V Co-operative Bank Ltd to mention a few.
Absolutely nothing ask yourself Lord Goddard once asserted that the only person one enjoys cash in a bank is the bank itself.
The customer owes a duty for taking proper care from inside the performing his purchase in order not to ever misguide the lending company otherwise assists forgery
- Bailment: where lender welcomes something (instance certification) to possess safer infant 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 financial works a person’s have a tendency to or is questioned so you can give believe possessions. This new trusteeship/executorship matchmaking you will definitely are present.
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 consumer owes an obligation for taking care in the carrying out his purchase whilst never to mislead the financial institution or support 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 customer owes an obligation to take worry in doing their buy in order not to ever misguide the financial institution otherwise helps forgery
- Obligations regarding privacy: to alleviate their user’s suggestions and you will affairs since private and you can strictly private. The proper out of privacy is actually maintained because of the Area 37 of the 1999 constitution subject to specific court justifications.
Comment (0)