2.1 Defining the Banker-Customer Relationship
The relationship between a banker and a customer is a contractual one, governed by common law and statutory regulations . A ‘customer’ is an individual or entity who has an account with a bank, even if it is a small or one-time account . The University of Chester’s Banking Law module emphasises the examination of “common law accountabilities and the differentiation between contractual and non-contractual obligations for the practising banker” . The banker-customer relationship can take on several legal forms depending on the context: debtor-creditor, trustee-beneficiary, principal-agent, and bailor-bailee.

2.2 Rights of the Banker
Banks possess specific rights to protect their interests in the banking relationship. These include:

• Banker’s Lien: The right to retain a customer’s assets until a debt is paid .

• Right of Set-Off: The right to set off a customer’s debt against their credit balance .

• Right to Charge Interest and Fees: The right to charge for services and lending as agreed.

• Right to Close Accounts: The right to close an account after giving reasonable notice.

2.3 Duties of the Banker
The bank has specific duties to its customers:

• Duty of Secrecy: The bank has a legal and ethical obligation to maintain the confidentiality of a customer’s affairs .

• Duty of Reasonable Care: The bank must exercise reasonable care and skill in its dealings with the customer, including in the collection and payment of cheques .

• Duty to Obey Mandates: The bank must follow the customer’s instructions, subject to legal constraints .

• Duty to Give Notice: The bank must notify the customer of any irregularities or dishonour of cheques.

2.4 Special Relationships and Third-Party Instructions
Bankers’ special relationships include handling mandates, powers of attorney (POA), and garnishee orders . A mandate is an authority given by a customer to a bank to perform specific acts on their behalf. A power of attorney is a legal document authorising another person to act on the customer’s behalf. Garnishee orders are court orders directing a bank to freeze funds in a customer’s account to satisfy a judgment debt. The bank must act with care and diligence in executing these instructions to avoid liability.