V Hill, the appellant claimed that his bank should render accounts and profits on how his money was being used

June 22, 2022

The client owes an obligation to take proper care into the doing his order so as not to mislead the bank otherwise assists forgery

  1. It’s got fundamentally come approved which they substitute a borrower-creditor relationship.
  • Where lender get dumps of money regarding buyers. (Here the lending company ‘s the debtor of your buyers and must spend to the request).
  • Where the bank loans money to help you its buyers. (Here, the newest banker is the creditor while the consumer 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.

Absolutely nothing wonder Lord Goddard immediately following mentioned that the only one one have cash in a lender ‘s the financial in itself.

The customer owes a duty to take proper care in executing their purchase so as to not ever mislead the bank or support forgery

  1. Bailment: the spot where the bank accepts something (including certificate) to own safer custody.
  2. Agency: The bank is regarded as Cincinnati backpage female escort 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.
  3. 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.
  4. Trusteeship/Executorship: where in fact the financial carries out somebody’s often or perhaps is expected so you’re able to give believe possessions. The fresh new trusteeship/executorship relationships you will definitely 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 client owes an obligation to take proper care within the executing their order in order to not mislead the lending company or support forgery

  1. 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.
  2. 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 to take worry inside the executing their buy whilst never to mislead the lending company or support forgery

  1. Responsibility of secrecy: to treat its user’s advice and you can activities as the private and you can strictly private. The best from privacy is actually preserved by the Part 37 of one’s 1999 constitution subject to particular judge justifications.