Bank And Bank Essay

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5. RELATIONSHIP BETWEEN BANKER AND CUSTOMER

The relationship between a customer and a banker depends on the activities, services or products provided by the bank to its customers or availed by the customers. The relationship between a banker and a customer is a transactional relationship. A bank’s business depends on the strong bondage with the customer. Trust plays an important role in building this strong bondage between a banker and a customer.
When does a legal relationship begin?
When two parties enter into negotiation, or a transaction, that are perceivable as a part of a contract intended by the parties to be concluded in future, a relationship of a legal nature is presumed to begin. Thus, where a person asks the banker to open an account for him, and is yet to lodge cash or a cheque for collection, a contractual relation is said to arise. The actual transactions in the account will only strengthen the relationship in terms of the benefits and obligations flowing from a contract.

5.1 ALLEGATIONS OF CHEATING AGAINST BANK

A bank or banking company which is registered as a company, being a body corporate, could not have a mind of its own so as to form the mental element of cheating. A banking company functions through human agents.
5.2 BANK GURANTEES:

Bank guarantees are guarantees given by supplier’s/contractor’s bank to the buyer/principal, promising to pay on demand and without demur, (these guarantees take place when there happens a contract between a bank and a customer) the sum of money mentioned in the bank guarantee , if it is invoked by the buyer/principal before the date of expiry of the bank guarantee mentioned in it.
Bank guarantees could be:
(a) towards earnest money deposit.
(b) as security against perfo...

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... the benefit of another, or of another and the owner.’
It can be said that trustee is the holder of the property on behalf of a beneficiary.
In case of trust, banker-cutomer relationship is a special contract. A person entrusts his valuable itmes with another person thinking that such items would be returned on demand, the relationship becomes of a trustee and trustier. When a customer keeps certain valuable items or deposits money for a specific performance, the banker here acts as a tustee.
6.4 (b) .Bailee-Bailor:

In Sec.148 of Indian Contract Act, 1872- a “bailment” is the delivery of goods to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.
The person delivering the goods is called the “bailor”.
The person to whom they are

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