Banker-Customer Relationship

Banking

Accepting current accounts, paying cheques drawn on himself, and collecting cheques for customers

The business of accepting current, deposit, and savings accounts or other similar accounts, paying or collecting cheques drawn by or paid by customers, and finance provision

<p>A person entitled to the repayment of a deposit, whether the deposit was made by him or another person</p> Signup and view all the answers

<p>The bank accepts the deposit and agrees to pay out checks based on account balance</p> Signup and view all the answers

<p>Not a customer</p> Signup and view all the answers

<p>Contract law</p> Signup and view all the answers

<p>A body of persons, whether incorporated or not, who carry on the business of banking</p> Signup and view all the answers

<p>The condition is that the sum owed is certain, due, and there is no express or implied agreement to the contrary. It implies that the bank has the right to use the customer's valuables, such as fixed deposits, to cover a debt owed to the bank.</p> Signup and view all the answers

<p>The court ruled in favor of the bank, implying that the bank's actions were valid in taking the money from Rahimah's fixed deposit to cover the debt.</p> Signup and view all the answers

<p>The main principle is the duty of confidentiality, which requires banks and their staff to keep customer information confidential. The penalty for breaching this principle is imprisonment.</p> Signup and view all the answers

<p>Section 133(3) of the Financial Services Act involves a person who isn't a bank officer but is also a third party or ex-banker.</p> Signup and view all the answers

<p>The bank and the customer have a contractual relationship, where the customer agrees to allow the bank to use their valuables to cover a debt.</p> Signup and view all the answers

<p>The Letter of Set-Off allowed the bank to use Rahimah's fixed deposit to cover the debt owed by Malrich Holdings.</p> Signup and view all the answers

<p>The relationship between a banker and a customer is a contractual relationship, where the parties intend to create a legal relationship.</p> Signup and view all the answers

<p>The two types of relationships that exist between a banker and a customer are debtor-creditor relationships and agent-principal relationships.</p> Signup and view all the answers

<p>In a debtor-creditor relationship, the bank acts as a creditor, and the customer acts as a debtor, where the bank lends money to the customer, and the customer repays with interest.</p> Signup and view all the answers

<p>The bank's obligation is to hold the customer's deposited money safely and return it when demanded.</p> Signup and view all the answers

<p>In an agent-principal relationship, the bank acts as an agent, carrying out mandates on behalf of the customer, such as setting up standing orders and collecting checks.</p> Signup and view all the answers

<p>A fiduciary relationship is one where a party places trust and confidence in another, and the banker has a high level of responsibility to manage the customer's account, avoiding conflicts of interest and undue advantage.</p> Signup and view all the answers

<p>A banker's responsibilities in a fiduciary relationship include managing special accounts like trust funds, recommending investments, and avoiding conflicts of interest and undue advantage.</p> Signup and view all the answers

<p>The court's decision in Robinson v Midland Bank Ltd 1925 established that the intention to create a legal relationship is essential for a contractual relationship between a banker and a customer.</p> Signup and view all the answers

<p>The bank breaches the trust when it benefits from the company repaying the loan with the invested money.</p> Signup and view all the answers

<p>The elements required are: (1) bank offered assistance, (2) bank had actual or constructive knowledge, and (3) there was dishonest and fraudulent intention or act.</p> Signup and view all the answers

<p>The bank was not liable as they didn’t provide knowing assistance.</p> Signup and view all the answers

<p>The elements are: (1) existence of trust, (2) dishonest and fraudulent design on the trust, (3) assistance of stranger in that design, and (4) knowledge of the stranger’s dishonesty.</p> Signup and view all the answers

<p>This is a banker’s right, fixed by the Association of Bankers, and no service charge or commission is applicable for deposit accounts.</p> Signup and view all the answers

<p>The two types of interest are: (1) agreed-upon interest, set clearly in a contract between the customer and the bank, and (2) implied interest, which can arise from everyday banking activities, like overdrafts.</p> Signup and view all the answers

<p>The bank has the right to set off or combine accounts when a customer has an amount in credit in one account and owes money to the bank in another account.</p> Signup and view all the answers

<p>Having actual or constructive knowledge implies that the bank is aware of the fraudulent design and is therefore liable as a constructive trustee.</p> Signup and view all the answers