In BRITISH and FRENCH BANK LTD. v. OPALEYE (supra) Mr. Opaleye the customer of the Bank had two accounts at the Bank, one in his name and the other in the name of the firm and he was the sole account holder. The firm account was overdrawn to the extent of ?500 and when a cheques of ?350 was paid into the private account the Bank decided to utilize the money from the private account in order to reduce the overdraft in the firm’s account. The Bank utilized the money from the private account to reduce the overdraft in the firm’s account. Opaleye told the Bank that ?350 less his commission belonged to the stranger whose property he had sold, the Supreme Court held: “I think it can be said with justice that very strongly implied an agreement to keep them separate and distinct, without any right on the part of the Bank to combine them or to transfer assets from one account to the other, at any rate not without reasonable notice of the intention so to do.”
CUSTOMER – BANKER RELATIONSHIP IS CONTRACTUAL
Furthermore, generally, the relationship of a bank customer and a banker is contractual. In other words, a customer to a bank in relation to the business of banking is any person having an account with a bank or for whom a bank has agreed to collect items and includes a bank carrying an account with...