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Liability attaching to the collecting banker. There is in implied term in the banker/customer relationship that a banker will receive his/her customers cheques and other instruments for collection in order to receive the proceeds from the drawee bank. There are certain risks attaching, and liability may be incurred in respect of the following: a) Conversion, e.g., where the customer has no title or a defective title to the cheques which he/she pays in for collection then the bank may become liable to the true
owner for the face value of the instruments.
b) Breach of contract, e.g., where the banker acting as an agent fails to carry out the statutory or legally recognized duties required of him/her, then he/she may incur liability to the customer.
NatalieR answered the question on February 15, 2022 at 01:43
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