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Cape Town -
A commercial bank accepts in good faith cheques deposited into a client's account - without the bank necessarily giving the client any guarantee that the cheque(s) concerned will be paid out, five judges of appeal have concurred.
Isaac Leeuw, a liquor merchant in Thaba Nchu, sold a client liquor on two occasions - the first time for more than R48 000 and the second time for R89 000.
Each time Leeuw accepted a cheque in good faith from the purchaser and paid it into his First National Bank (FNB ) account. The first cheque was paid by the bank, but FNB rejected the second cheque because it had established that both cheques had been stolen and fraudulently signed.
FNB demanded the return of the R48 000 that it had already paid Leeuw, while Leeuw in turn demanded the second cheque's R89 000 from FNB. He argued that FNB, in handling the cheques, guaranteed their payment.
The judges of appeal unanimously found that in the circumstances FNB had given Leeuw no guarantee that the cheques would be paid out. FNB had merely done what any commercial bank does - accept in good faith cheques deposited into a client's account.
In the circumstances Leeuw cannot demand money from FNB and he has, moreover, to return the R48 000 already paid out to him.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.