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BANKER'S SPECIAL RELATIONSHIP
What is the primary legal relationship between a bank and its depositor?
The primary legal relationship is that of debtor and creditor, where the bank (debtor) owes money to the depositor (creditor) and must repay it on demand or as agreed.
What type of relationship exists between a bank and a customer who avails a locker facility?
Lessor and lessee relationship exists for safe deposit lockers.
In what landmark case did the courts establish that a bank's relationship with its depositor is one of debtor and creditor, not trustee and beneficiary?
In Foley v. Hill (1848), the House of Lords firmly established that a bank holds deposited money as a debtor, not as a trustee, giving the bank ownership of the funds with an obligation to repay.
What is the relationship between a bank and customer when the bank executes standing instructions?
Bank acts as agent or mandatory of the customer.
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