Management and Organizational Studies 2275A/B Lecture Notes - Lecture 9: Caveat Emptor, Negotiable Instrument, Subrogation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Key limit remaining on banks business is the prohibition against selling or promoting insurance products in their branches. Bank as a debtor and customer as creditor. If bank provides financial advice, they owe fiduciary duty. Provide account information to customer on regular basis. Take reasonable steps to provide documentation as to who is authorized to give instructions to the bank, in order to prevent fraud or forgery. Banking contract: contract that specifies the rights and obligations of a bank and customer. Purpose is twofold: to specify who has authority to issue instructions to the bank on behalf of customer, to allocate risk of loss resulting from problems with verifying customers authourity and carrying out customers instructions. Account agreement (financial services agreement): key document in banking contract. Includes provisions such as: banks ability to apply service charges, instructions for payment by customer, especially in issue of cheques, confirmations and stop payments on cheques, release of info by bank about customer.