Questions On Banking Practice From Vols I Xviii Inclusive of the Journal

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Questions On Banking Practice From Vols I Xviii Inclusive of the Journal
Institute of Bankers Great Britain
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Your opinion is requested upon the same question with regard to a cheque where (c) The drawer's name (that of the banker's own customer) and (d) An endorsement necessary to complete the title to the cheque is forged.
Questions on Banking Practice. 171 ENDORSEMENTS continued.
3. You are requested also to advise how a banker can protect himself, in the case of a bill or cheque presented by a stranger against loss if the bill or cheque should prove to have been tainted by forgery.
(OPINION. ) I fa
... 2. The law on the subject of money paid by mistake is in an unsatisfactory state. It is not possible to reconcile either the decisions themselves or the reasons on which they are founded. We think, however, that the true view now is, that negligence on the part of the payer is immaterial, and that in all the four cases put to us the banker could recover the money paid from the person who presented the bill, if he gave notice to the latter, before his position had been altered. Where, however, the position of the party who receives payment has been altered before he is notified of the pay- ment under mistake as, for instance, when it is too late for him to give a valid notice of dishonour or where he is an agent for collection, and has paid over the money to his principal we are of opinion that the money paid cannot be recovered back from him.

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