pay and claim later.
if fail, customer can sue for breach of contract.
section 75 BEA. given written instructions. banker not liable if payment made before instructions received. send countermand to branch where account is kept. bring countermand to banker's notice; otherwise no liable if pay out. banker's duty and authority end.
collect cheques for customer. present to paying banker. credit to customer's acc.
agent for customer when collecting cheques. when presenting cheque to paying banker and collect payment: must exercise reasonable care and diligence.
section 47 BA. case law: Tournier v National Provincial Bank. 3rd Schedule BA. Bank - legal obligation to keep information of customer secret. held: informationthat must be kept secret. obligation extends to even when customer's account closed. Part I: Futher disclosure not prohibited. Part II: Futher disclosure prohibited. state of client's account. all transactions & securities give. information received about client.
reasonable care and skill in drawing cheques. maintaining sufficient funds to meet liability of cheques. keep cheque book securely. give proper notice of countermand. keep PIN secret.
Banker can charge for service. charge interest on loans. to repayment of loans. to use C's money that is deposited provided. expect due care from C. express agreement. implied from course of dealing. where it is reasonable to charge a commission. when makes loan/ advances to customer. usually includes clause on right to vary interest. right to repayment. may include penalty clauses on late payment. money returned when C's withdraws. honour cheques issused by C. when drawing cheques. maintaining cheque book. PIN numbers. express term that commission will be charged. right to commission implied from previous dealings. case law: spencer v wakefield.
to exercise lien over customer's property. lien - right to possession of property of another until repayment. B has lien over securities deposited with it in ordinary course of business. no lien over. title deeds (unless express agreement). jewellery in safe deposit box.
C dies. mental incapacity. bankruptcy/ winding up. B receives notice. can set off. claim balance from personal representative. notice. declaration. can set off. claim against official assignee.
2 current accounts. 1 current & 1 saving account. 1 loan & 1 current account. bank not obliged to honour cheques on acc in debit by transferring from account in credit. usual practice: B will set off. cannot set off money in current account. unless agreed.
combine/ set off accounts. set off only when accounts stopped. no set off. against C's future liabilities. express/ implied agreement against set off. account contain trust funds. if account in different names.