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

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

The customer owes an obligation when deciding to take proper care in performing their purchase whilst to not mislead the bank otherwise assists forgery

  1. This has basically come approved that they stand-in a debtor-creditor relationship.
  • Where in fact the bank receives dumps of cash on customers. (Right here the financial institution is the debtor of your customers and must spend to your demand).
  • Where in actuality the loans money in order to the consumer. (Right here, the newest banker ’s the creditor together with customer 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 ask yourself Lord Goddard immediately following mentioned that alone you to definitely has money in a lender ’s the financial itself.

The consumer owes an obligation to take care inside the executing his acquisition so as not to misguide the bank otherwise support forgery

  1. Bailment: where in actuality the financial accepts something (instance certificate) having secure custody.
  2. 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.
  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: in which the financial carries out another person’s will or is asked to give believe possessions. The brand new trusteeship/executorship relationship could can be found.

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 a duty for taking care within the performing his purchase so as not to ever misguide the financial institution otherwise helps 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 additional reading 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 client owes an obligation for taking worry in performing his acquisition in order to not mislead the financial institution otherwise helps forgery

  1. Obligations out-of privacy: to alleviate the customer’s guidance and you can items due to the fact individual and you will strictly private. Best away from privacy is managed by the Point 37 of one’s 1999 structure susceptible to certain judge justifications.