—— Part
III.
619
Business of Banking.
1249. A collecting banker is not precluded from debiting his customer with money he has paid him as the proceeds of a negotiable instrument should the banker have to account for them to the true owner (b).
1250.
A payment
is
made under
a mistake of fact
if
so
made
SECT. 10.
Eecovery of
Money
paid on
Forged Documents.
honestly, notwithstanding the payer had means of knowing the Collecting true facts of which he did not avail himself (c). A misapprehension bankers. of fact confined to the party paying, but for which he would not Mistake of have paid the money, is not sufficient (<i). The property in the fact. money given in payment of a cheque passes, and the payment is complete, as soon as the money is placed on the bank counter (e).
Sect. 11.
The Pass-book,
1251. Entries in the pass-book to the credit of the customer are, The passthe book is delivered to him, prima facie evidence against the book as evidence. banker when the book is returned by the customer without objection, entries to his debit are prima facie evidence against him (/). Where credits appear by mistake in the pass-book for money Erroneous not really received, and the customer alters his position in reliance entries. thereon, the bank cannot afterwards debit the account with the amount {g) but, in the absence of any change of position, credits mistakenly entered may be rectified within reasonable time(/i). A bank, however, w^ould not be permitted to retain moneys paid in, but omitted to be credited, even if the customer had not noticed their omission in the pass-book.
when
1252. Where a periodical or other balance has been struck in EfEect of balance being the pass-book, and the pass-book is returned by the customer struck. without comment, this has been treated as constituting evidence of Elsewhere the matter has been a stated and settled account {i). regarded as one still requiring evidence of implied contract between banker and customer
(/i:).
return of the pass-book without comment to constitute a stated and settled account, it appears doubtful whether the customer is estopped from subsequently disputing debits shown therein to the prejudice of the bank, i.e., from reopening the
Assuming the
(Bills of
Exchange Act, 1882
to point to deprivation of the
& 46 Vict. c. 61), s. 49 (12) ). Tliis would seem immediate right, not loss of the power to give notice,
(45
as the test.
Bavins, junr. and Sims v. Loudon and South Western Bank, [19 JO] 1 Q. B. where the instrument was treated as negotiable. (c) Kelhj V. Solari (1841), 9 M. & W. 54 Imperial Bank of Canada v. Bank of Hamilton, [1903] A. C. 49, at p. 56. (d) Chambers v. Miller (1862), 13 C. B. (n. s.) 125, in which case the banker had mistaken the condition of the customer's account and paid the cheque. (6)
270,
(e)
,
(/)
Chambers
As
v. Miller, supra.
to the history of the pass-book, see Devaijnes v. Noble (Claifton^s Case)
Commercial Bank of Scotland v. Ehind {I860), 3'Macq. 643. Skyring v. Greenwood (1825), 4 B. & C. 281. Commercial Bank of Scotland v. Rhind, supra, at p. 653. Blackburn Building Society v. Cunlife Brooks (h Co. (1882), 22 Gh. D. 61, at
(1816), 1 Mer. 530, 535 (g) (/i)
{%)
pp. 71, 72. {k)
Vagliano
v.
Bank
of
England
(1889), 23 Q. B.
D. 243, at
p. 263.
