Tort Law Essay Example | Topics and Well Written Essays - 1000 words

Tort Law - Essay ExampleThe banks stock and paid some run downs worth approximately HK$5.5 million. The halts appeared to be genuinely drawn by the company and they stupe the signature of Mr. Chen who was one of the authorized signatories for the company to the cheques. In each of the instances, the banks used each cheque to debit the companys account. However, these cheques were forgeries and not the companys cheques. An accounts clerk had forged Mr. Chens signature on each cheque. The of import issue in the appeal is to put who was to bear the loss arising from the forgeries. The question of general principle was to determine the nature and extent to which a customer has a duty of care to his bank in parity to the operation of his current account.The companys submission was that, where no other agreement exists amid the banker and customer, the customers duty could only be limited to two sets of circumstances. In drawing his cheque, the customer must exercise due care. A ch eque having a forged signature is not the customers and the bank therefore cannot pay it. The customer must also bring to the attention of the bank any forgery, which he discovers so that the bank whitethorn take precautions to avoid loss. If any breach of such duty by the customer leads the bank to take aim payments on the forged cheque, the customer is liable to bear the loss.The banks submission on the issue was that from the relationship between banker and customer, the latter has a duty to the former to take precautions to prevent the presentation of forged cheques to the bank and to drive out his periodic bank statements. That is so as identify and report to the bank any items, which he may not have authorized. The duty is both in contract and in tort (Hodgson and Lewthwaite, 2004, p. 417).In delivering the master keyships ruling, Lord Scarman said that their Lordships believed there was nothing to the advantage of the laws development in trying to find a indebtedness in t ort