Principle

BANKING LAW — Banker-Customer Relationship — Duty of Bank to Comply with Customer’s Mandate

Area of law
BANKING LAW
Court
Supreme Court

Banks owe a duty of care to comply with customer mandates and compare signatures before payment. Negligence, not absolute liability, is the standard. The principle applies to banking law. The rule requires banks to exercise due diligence in payment procedures. Failure to show signature comparison…

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