It is a basic obligation that the bank will honour, on presentation, a cheque provided that there is a sufficient balance or agreed overdraft.
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Card 7
Front
The bank exceeded its mandate when it honoured a cheque signed by one director when the mandate required two signatures.
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Card 8
Front
Guidelines for negligence: (1)question should be considered separately for each cheque;(2)test for negligence is whether the transaction should have aroused suspicion and caused to make inquiries:(3)negligence should be proximate cause of loss
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Card 9
Front
The bank honoured a cheque bearing one signature when the mandate required two. The sole signatory had actual authority from the plaintiff's board of directors so the bank had actual authority.
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Card 10
Front
Where the customer gives erroneous or ambiguous instructions capable of several interpretations, the bank will not be liable if it adopts a reasonable interpretation.
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Card 11
Front
Customer gave an instruction to countermand a cheque with details of the cheque number and payee, but not the account no. The clerk made a note against one account, but not the other. Cheque paid. Countermand was effective, breach of duty.
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Card 12
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If the details set out in the countermand instruction are sufficient to identify the cheque, the bank comes under a duty to conform and stop the cheque, even if notice is inadequate or defective in one detail.
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Card 13
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Countermand was ineffective when given over the phone to an employee who lacked authority to deal with such instructions, and who thought the instruction would be later confirmed in writing.
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Card 14
Front
Unless the customer is able to show that he has sustained loss, he is only entitled to nominal damages, i.e. one shilling.
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Card 15
Front
In the context of a business customer, there is a presumption in the favour of the customer that he will suffer loss of reputation.
