Handbook 1996 : Faculty of Law (Volume 3 page 215)
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Optional Law subject.
Availability: Not offered in 1996.
Prerequisite: Contracts; Property.
Corequisite: Equity. Banking and Negotiable Instruments is one of a broad group of subjects dealing with commercial law, the fundamental one of which is Law of Sales. However, the subject is discrete in itself and need not necessarily be taken in conjunction with any other optional course. Nevertheless, since a large part of banking business consists in lending money on various securities, and since the law relating to securities is not dealt with in this course, students who have a particular interest in pursuing a career that may require a knowledge of banking law should at some time also have taken Law of Security and Secured Transactions in order to become familiar with the principles applicable to various types of securities.
Contact: 2 hours per week
Objectives:
Students completing this course should: be able to demonstrate the application of general principles of contract law to the specific contractual relationship of banker and customer; be familiar with the particular rules that apply to the banker-customer contract; have an awareness of the social context in which the banker-customer contract operates; have an understanding of the concept of negotiability and its utilisation in relation to the complex contractual relationships that arise under the common forms of negotiable instrument; be familiar with the partial codes of law embodied in the Bills of Exchange Act 1909 (Cth) and the Cheques and Payment Orders Act 1986 (Cth), and some of the case law relevant to their interpretation; and have an understanding of how the financing of international trade is facilitated by means of banker's commercial credits and negotiable instruments, and of the legal basis of such documents.
Content:
A brief overview of the Australian banking system. The legal concept of the business of banking. The nature of the banker-customer relationship. Who is a customer? The Codes of Banking Practice. The rule in Clayton's case. Set-off (combination of accounts). The duty of the customer in relation to the account. The bank's duty of secrecy. The bank's liability for advice - to customers and to third parties. Alternative dispute resolution: the Australian Banking Industry Ombudsman. The concept of negotiability. A detailed analysis of the bill of exchange, promissory note and cheque; and the contractual rights and liabilities arising from the use of these instruments. The special rules relating to cheques, particularly lost and stolen cheques. If time permits, the legal rights and obligations arising out of the use of credit cards.Bankers' commercial credits as used in the financing of international trade.
Assessment:
Either Research Assignment 2500-3,000 words (50 per cent) and Final Exam 11/2 hours (50 per cent); or Final Exam 3 hours (100 per cent).
Prescribed texts:
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Handbook 1996 : Faculty of Law (Volume 3 page 215)
Status: Official 1996 Date created: Oct 9 1995 Last modified: Oct 9 1995 Authorised by: Academic Registrar Email enquiries: Course_Information@registrar.unimelb.edu.au
Maintained by: Faculty of Law.
Copyright © University of Melbourne 1995,1996.