Not to take undue advantage over the customer in this

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not to take undue advantage over the customer. In this case, the bank has a fiduciary duty towards the customer to act in the customer’s interests and not to take undue advantage over the customer. An example is the case between Woods v Martins Bank Ltd (1959).
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Question 2 Fiduciary relationship When Jerry sought advice from National Investment Bank Bhd and when National Investment Bank Bhd provided Jerry advice in relation to the investment on XYZ Company, a fiduciary relationship was established. In this relationship, the bank owes a fiduciary duty towards Jerry to act in his interest and not to take undue advantage on him. Debtor-customer relationship When National Bank Bhd accepted the deposit of RM7.0 million from Jerry, a debtor-customer relationship was established. In this relationship, the bank acts as a debtor while Jerry acts as a creditor. The implication of this relationship is that the bank, as a debtor, is answerable for the deposited amount, which is RM7.0 million, only when demanded. However, the bank is not answerable to Jerry on how the deposited amount is being used. Agent-principal relationship When National Bank Bhd accepted instructions from Jerry to transfer the deposits to his trading account, an agent-principal relationship was established. In this relationship, the bank acts as agent while Jerry acts as a principal. As an agent, the bank must act according to the mandate provided. Failure to do so will result in a breach of contract.
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Question 3 Alan is suing Bank Setia on breach of fiduciary duty.
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  • Fall '16
  • Wang Ah Yong
  • Debt, Cheque, Deposit account, M Bank Bhd

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