Mandate and the Bank and Customer Relationship. Da Ungaro & Sons (PTY) LTD v ABSA Bank LTD [2015] 4 All SA 783 (GJ)
Journal of Contemporary Roman-Dutch Law, Vol. 79, p. 514-522, 2016
9 Pages Posted: 28 Feb 2017
Date Written: August 26, 2016
Abstract
In July 2000 the plaintiff’s financial manager (Huang) opened a savings account with the defendant, Absa Bank, on behalf of and in the name of the plaintiff. One of the plaintiff’s directors testified that although Huang had authority to open the account in question, he had no authority to make withdrawals or transfers in respect of the account. Over a period of a year Huang unlawfully withdrew more than R11 million from the savings account, of which R9 million was eventually recovered. Some of these withdrawals had seemingly been performed telephonically and included cash withdrawals. The plaintiff claimed the remainder, more than R2,6 million, from the defendant on the basis that the Bank was negligent in allowing Huang to withdraw money from the account while in fact he was not authorised to do so.
Keywords: Mandate, bank and customer relationship, savings account
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