Finance Law Lecture 3.doc - Lecture 3 Special Customers 1 Joint account Forgery of Signature Whether xxx can sue Bank xxx due to the honouring of forged

Finance Law Lecture 3.doc - Lecture 3 Special Customers 1...

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Lecture 3 Special Customers 1. Joint account - Forgery of Signature Whether xxx can sue Bank xxx due to the honouring of forged cheque presented by xxx? A joint account is opened in the names of two or more customers where all have joint property ownership . Banks need to be aware of the legal rules that affect joint property ownership and must ensure that directions given to the bank by the account holders are truly representative of all account holders and not just one of them include the authority to sign and operate the account. The banker-customer relationship establishes when the bank agrees to the opening of customer’s account as per Barclays Bank Ltd v Okenahre (1966) 2 Lloyds provided there is an offer that has been accepted. In the absence of any agreement, the debt owed by the banker to the customers is owed to them jointly and severally include an overdraft. This means the joint account holders are both jointly and individually liable for the debt. As a
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