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

The client owes an obligation to take worry in executing their buy whilst not to misguide the bank or helps forgery

1. This has basically become acknowledged that they stand in a borrower-creditor dating.

• Where the bank obtains places of money on customer. (Right here the lending company is the borrower of buyers and ought to shell out into the demand).
• Where loans from banks money so you’re able to its consumer. (Right here, the brand new banker ‘s the creditor and the customer ‘s 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.

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Nothing question Lord Goddard immediately following said that alone that keeps cash in a financial ‘s the lender in itself.

The customer owes a duty to take care and attention for the doing his acquisition whilst to not ever mislead the financial institution or support forgery

1. Bailment: where in actuality the bank allows a product (including certificate) to possess secure child 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: where financial executes somebody’s usually or perhaps is asked in order to give faith assets. The brand new trusteeship/executorship dating 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 and attention within the executing his order so as not to ever mislead the lending company otherwise facilitate 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 customer owes an obligation when planning on taking worry from inside the carrying out their order so as to not ever misguide the lending company or support forgery

1. Duty out of privacy: to ease their customer’s guidance and issues due to the fact individual and you may strictly confidential. Suitable off privacy is actually managed of the Section 37 of the 1999 constitution at the mercy of specific legal justifications.