Legal principles applicable
- A banker must not pay cheques without a customer’s authority.
- If such payment is made, the bank will be held liable.
- The bank failed to notice that the signature on the cheque was not that of a duly authorised signatory.
- The bank will be held liable for negligence.
- The bank will be compelled to credit the company’s account with Sh.95, 000.
- Jasmin Mrongo and Peter Kraft are also liable to be prosecuted for theft and forgery.
- Catious Company Ltd. Can therefore successfully sue the bank,
- It can also have Jasmin Mrongo and Peter Kraft prosecuted for the offence of stealing by servant.
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