McCarthy Ltd v ABSA Bank Ltd (511/08)
McCarthy Ltd v ABSA Bank Ltd (511/08) [2009] ZASCA 118; 2010 (2) SA 321 (SCA) ; [2010] 1 All SA 435 (SCA) (25 September 2009)
The Supreme Court of Appeal held that the trial court misdirected itself by focusing on whether the bank was contractually bound to avoid negligence in its collecting function, rather than considering whether the bank was negligent in paying the cheques. The appellant's claim was properly construed as alleging breach of the mandate to exercise reasonable care when paying cheques. The evidence presented was sufficient for a reasonable court to find that ABSA ought to have made further enquiry before paying the cheques, and its failure to do so could be considered negligent. The knowledge acqui…
Source excerpt
- Negligent Payment Of Cheques
- Banker Customer Relationship
- Implied Terms Of Contract
- Standard Of Care
- Absolution From The Instance
- Causation Of Loss