THE LAW RELATING TO BANKING

• Main Author: Reeday, T. G (Author)
• Format: Book
• Language: English
• Published: London Butterworths 1985
• Edition: 5th ed
• Subjects: Banking law > Great Britain
• Online Access: Click Here to View Status and Holdings.

 This opening chapter is a resumé of the law of contract, because although the circle of the law relating to banking includes segments of other branches of the law such as tort, the area within its circumfer ence is largely that of contract, for the relationship of banker and customer is a contractual one, being usually that of debtor and creditor or, less frequently, when the customer has loan or overdraft facilities, creditor and debtor. Lingering ideas that the relationship was a fiduciary one (i.e. that the bank held the money in trust for the customer) or simply one of safe custody of the money were rejected by the House of Lords in Foley v. Hill (1848), where it was held that the relationship was the ordinary one of debtor and creditor; money paid in became the banker's money to make what profit for himself that he could, subject to his contractual liability to repay the money when demanded.