Banking and Finance Law
MID TERM ASSIGNMENT
BANKING & FINANCE LAW
Name: Tran Cong Hieu
Student ID: 15402543
Word count: 986
ISSUES
Can Fantastic Landscapes Pty. Ltd. have the right to sue Red Bank to claim $50,000 which Minnie has stolen?
Can Fantastic Landscapes Pty. Ltd. sue Red Bank for compensation for the $10,000 penalty fee?
Can Fantastic Landscapes Pty. Ltd. seek compensation from BLB?
RULES
Firstly, who is the customer?
Secondly, content of the contact at (2.65) states that: the contact between the bank and the customer is ongoing one. It exists until terminated pursuant to contractual principles, which could include agreement of the parties or breach of the condition entitling the innocent party to terminate.
Thirdly, the bank’s duty of confidentiality. Case: Tournier v National Provincial and Union Bank of England Ltd (1924) 1 KB 461
Next, in the duty of customer, it follows Macmillan duty and it also relates to the duty to organize business which is focused by following cases: ,(6.20) Lewes Sanitary Steam Laundry Co Ltd v Barclay Co Ltd (1906) 95 LT 444; and (6.21) National Bank of New Zealand Ltd v Walpole and Patterson Ltd (1975) 2NZLR 7.
Joint account holders, case: Arden v Bank of New South Wales (1956) VLR 569
Combination of account, the bank’s right to combine accounts is dependant on the accounts being the same or closely similar. The right to combine accounts without express agreement: accounts must be held by customer in the same capacity, must not be an agreement or course of dealing with the customer which has negated the bank’s right to combine accounts, customer’s indebtedness must have been incurred to the bank as an banker and not in relation to other business carried on by the bank eg travel business. The main case of this rule is: Garnett v McKewan 1872.
Knowing Receipt: Case: Thomson v Clydesdale Bank Ltd (1893) AC 282
APPLICATION
Fantastic Landscapes is a customer of the Red Bank because it has accounts in this bank which are
BANKING & FINANCE LAW
Name: Tran Cong Hieu
Student ID: 15402543
Word count: 986
ISSUES
Can Fantastic Landscapes Pty. Ltd. have the right to sue Red Bank to claim $50,000 which Minnie has stolen?
Can Fantastic Landscapes Pty. Ltd. sue Red Bank for compensation for the $10,000 penalty fee?
Can Fantastic Landscapes Pty. Ltd. seek compensation from BLB?
RULES
Firstly, who is the customer?
Secondly, content of the contact at (2.65) states that: the contact between the bank and the customer is ongoing one. It exists until terminated pursuant to contractual principles, which could include agreement of the parties or breach of the condition entitling the innocent party to terminate.
Thirdly, the bank’s duty of confidentiality. Case: Tournier v National Provincial and Union Bank of England Ltd (1924) 1 KB 461
Next, in the duty of customer, it follows Macmillan duty and it also relates to the duty to organize business which is focused by following cases: ,(6.20) Lewes Sanitary Steam Laundry Co Ltd v Barclay Co Ltd (1906) 95 LT 444; and (6.21) National Bank of New Zealand Ltd v Walpole and Patterson Ltd (1975) 2NZLR 7.
Joint account holders, case: Arden v Bank of New South Wales (1956) VLR 569
Combination of account, the bank’s right to combine accounts is dependant on the accounts being the same or closely similar. The right to combine accounts without express agreement: accounts must be held by customer in the same capacity, must not be an agreement or course of dealing with the customer which has negated the bank’s right to combine accounts, customer’s indebtedness must have been incurred to the bank as an banker and not in relation to other business carried on by the bank eg travel business. The main case of this rule is: Garnett v McKewan 1872.
Knowing Receipt: Case: Thomson v Clydesdale Bank Ltd (1893) AC 282
APPLICATION
Fantastic Landscapes is a customer of the Red Bank because it has accounts in this bank which are