The paper "Legal Duties of Banker" is a perfect example of finance and accounting coursework. The importance of banks in modern economies cannot be underestimated. The position held by banks and the size of activities makes it necessary to study the relationship that subsists between the banker and the customer. This essay will attempt to ascertain the legal nature of the customer-banker relationship. A banker is a professional who advises the clients regarding financial matters. He is a dealer in the capital. He is an intermediary between the lender and the borrower. A customer, on the other hand, is a person who maintains a bank account with the bank (Sheinman 2003, p.
60). The role played by a banker to the customer is one of the multiple duties. Bankers are of different forms, and each form has its own unique way. Some of the services a banker provides to a customer include savings, taxes, loans, securities and investments. A banker will provide financial assistance according to the needs of a client (Kavitha 2012, p. 30) In general, a banker has numerous duties that align in their normal job duties.
The banker should ensure that a client’ s financial standing is well assessed, and in accordance with that financial standing, he should offer bank’ s programs. The banker, after reviewing the financial position of a client, he introduces financial programs that the client needs. The banker should ensure that the financial needs of a customer are solved in each step on the way (Memmel & Schertler 2010, p. 609) While maintaining a current account for a customer, a banker must fulfill legal requirements prescribed by the governing body.
Some of the basics that a banker should do while opening a current account for a customer is to verify and record the information of the customer. The bank has a legal duty to ensure that the information supplied by the customer is correct. The banker should also ensure that all relevant information about the account is provided to the customer. This includes any bank charges that are chargeable, and any other such information (DeYoung & Yom 2008, p. 277). The contractual relationship between the banker and the customer entails both express and implied terms.
Express terms are the terms that are expressly stated in the contract when the agreement was completed (Singh 2013, p. 10). Express terms are usually approved by all parties to a contract. In the banker-customer relationship, express terms are hardly negotiated. Implied terms are the terms that are not expressly stated in the contract when it was being entered into. In the case of Emerald meat Ltd v AIB Group Ltd, it was decided in the customer’ s favor. In his decision, justice Phil LI stated that neither the bankers established usage, nor a generally accepted practice of banks to establish a three-day cycle had been established.
An implied term or conation could not be assumed to exist on the basis of practice and custom of banks. The court also held that the bank was within the law on charging interest to the customer for the third day. The judge clarified that when he says the bank was within the law, he meant there was no an unlawful act that amounted to breach of the contract given the circumstances of that case (Ozdincer & Ozyildirim, 2011, p.
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