Tutorial 2.pptx - Question 1 Joint accounts may require...

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It is more convenient for payments to be authorised by any one joint holder. They could authorise the bank to accept the instructions of either one of them, by signing a mandate authorising the bank to pay cheques and make other payments if the cheque or payment instruction is signed by only one of them. Question 1 Joint accounts may require either both account holders to sign or just one of them to sign. Discuss which alternative is more convenient for both the bank and the account holders and why.
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Joint liability : Each joint account holder is liable for his or her share of money of the money owed to the bank. Joint and several liability : Each joint account holder is liable up to full amount owed to the bank. Example o A bank could be in a position where a joint account (with two joint holders) has been allowed to become overdrawn to the extent of $80,000 on the strength of the wealth of one of the joint holders to the account. o If the joint holders are only jointly liable, the bank can seek to recover $40,000 from each joint holder but if one of the joint holders has no money, it would be difficult to recover the $40,000 due from him or her. o From the bank’s point of view, it is better if it can pursue the wealthy party for the full $80,000 and this could be done if both account holders were jointly and severally liable for any amounts payable on the account. Question 2. Discuss the differences between joint and several liability AND joint liability in the context of joint accounts. Support your discussion with relevant examples.
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Question 3a The Bank Tenaga will persuade the account holders to agree to joint and several liability for any amounts owed to the bank on the account.
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  • Fall '16
  • Wang Ah Yong
  • Tort Law, Joint and several liability, Tort reform, Walt Disney World v. Wood

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