Banking law & Practices, Banking, Banker rights, case study, rule in Clayton's case
1. RIGHTS OF A BANKER MEANING
IN BANKING, A BANKER IS AN OFFICER OF A
BANK WHO CONDUCTS THE BUSINESS OF
BANKING. A BANKER HAS SOME RIGHTS AND
OBLIGATIONS THAT MUST BE IMPLEMENTED
AND FOLLOWED TO PROVIDE THE BEST
BANKING SERVICES TO THE CUSTOMERS.
3. RIGHT TO SET OFF
The right of set-off is the right of a bank to
adjust the amount due to it from a debtor
against the amount payable by it to the debtor
to determine the net balance payable by one
to another 1. The right of set-off can be
exercised subject to the fulfillment of the
following conditions :
1.All the funds must prima facie belong to the
customer.
2.When debt amounts are certain.
3.When the debts are in the same rights.
4.There is no contract expressed or implied in
contrast.
4. RULE IN CLAYTON’S CASE
The rule in Clayton’s case
creates a presumption as to the
appropriation of payments into a
running account being
attributable to the repayment of
the oldest debits from the
account. In other words, when in
the absence of a contrary
intention, payments are
presumed to be appropriated to
debts in the order in which the
debts are incurred.