Get premium membership and access questions with answers, video lessons as well as revision papers.
1. Duty of Care: The banker is bound to exercise reasonable care and skill in his dealings
with the customer. The standard of care and skill is that of a reasonably competent banker.
If the banker fails to exercise such care and skill, the customer has an action in damages
for any loss arising for professional negligence.
2. Professional Advice: The banker is bound to give the customer professional advice on
request. He is bound to give advice on investments as and when requested failing which he
is liable in damages.
3. Duty to Honour Cheques: The banker is bound to honour all cheques drawn by the
customers provided: -
a. The cheque is complete and regular on the face of it
b. The customer?s account has sufficient funds
c. The cheque is presented at a reasonable hour on a business hour and business day.
d. The payee identifies himself to he satisfaction of the banker.
e. If a banker fails to honour a cheque in breach of this duty, the customer has an
action in damages.
4. Duty of Secrecy: The banker is bound to maintain confidentially in his dealings with
customer. He must not discuss to 3rd parties any information which comes to him in the
course of his dealings with the customer. The duty of secrecy was laid down in Tournier v.
National Provincial and Union Bank of England which the English Court of Appeal
insisted of the upholding of the duty. However the court was emphatic that the duty may
be qualified in certain circumstance where personal information relating to the customer
may be discharged to 3rd parties e.g.
a. Where disclosure is provided for by the law
b. Where the banker has the customer convent to disclose
c. Where disclosure is necessary in the public interest
d. What it is necessary to protect the banker
sharon kalunda answered the question on April 12, 2019 at 14:02
- Explain the duties of a customer to a banker in relation to the negotiable instrument.(Solved)
Explain the duties of a customer to a banker in relation to the negotiable instrument.
Date posted: April 12, 2019. Answers (1)
- Discuss the types / classification of cheques.(Solved)
Discuss the types / classification of cheques.
Date posted: April 12, 2019. Answers (1)
- How does a cheque differ from a bill of exchange. (Solved)
How does a cheque differ from a bill of exchange.
Date posted: April 12, 2019. Answers (1)
- Outline the characteristics of Negotiable Instruments.(Solved)
Outline the characteristics of Negotiable Instruments.
Date posted: April 12, 2019. Answers (1)
- What is a negotiable instrument?(Solved)
What is a negotiable instrument?
Date posted: April 12, 2019. Answers (1)
- State ways in which an Agency is created.(Solved)
State ways in which an Agency is created.
Date posted: April 12, 2019. Answers (1)
- How does bailment differ from agency?(Solved)
How does bailment differ from agency?
Date posted: April 12, 2019. Answers (1)
- What is the difference between Trust and Agency?(Solved)
What is the difference between Trust and Agency?
Date posted: April 12, 2019. Answers (1)
- Highlight TWO similarities between Agency and Trust.(Solved)
Highlight TWO similarities between Agency and Trust.
Date posted: April 12, 2019. Answers (1)
- Discuss the essentials of an insurance contract?(Solved)
Discuss the essentials of an insurance contract?
Date posted: April 12, 2019. Answers (1)
- What is insurance?(Solved)
What is insurance?
Date posted: April 12, 2019. Answers (1)
- Highlight the factors that are NOT affected by Non Registration of a Partnership Form of Business Organization.(Solved)
Highlight the factors that are NOT affected by Non Registration of a Partnership Form of Business Organization.
Date posted: April 12, 2019. Answers (1)
- Highlight the consequences of Non Registration of a Partnership Form of Business Organization.(Solved)
Highlight the consequences of Non Registration of a Partnership Form of Business Organization.
Date posted: April 12, 2019. Answers (1)
- Outline the types of members in a partnership.(Solved)
Outline the types of members in a partnership.
Date posted: April 12, 2019. Answers (1)
- State the characteristics of contract of guarantee.(Solved)
State the characteristics of contract of guarantee.
Date posted: April 12, 2019. Answers (1)
- Discuss three types of contract of guarantee.(Solved)
Discuss three types of contract of guarantee.
Date posted: April 12, 2019. Answers (1)
- Outline the two types of indemnities.(Solved)
Outline the two types of indemnities.
Date posted: April 12, 2019. Answers (1)
- Highlight ways in which the hire purchase act attempts to protect the hirer for exploitation. (Solved)
Highlight ways in which the hire purchase act attempts to protect the hirer for exploitation.
Date posted: April 12, 2019. Answers (1)
- State the purposes served by the registration of a hire purchase agreement.(Solved)
State the purposes served by the registration of a hire purchase agreement.
Date posted: April 12, 2019. Answers (1)
- Highlight the circumstances under which the Registrar may refuse to register a Hire Purchase Agreement.(Solved)
Highlight the circumstances under which the Registrar may refuse to register a Hire Purchase Agreement.
Date posted: April 12, 2019. Answers (1)