A bank will be liable for the wrong of its worker (servant) where it is shown that the wrongful act of the worker was done while the servant was acting within the scope of his employment and authority. Ajagu V. Union Bank of Nigeria (1986) 1 QLRN 184; OGUNDANA v. Akinwunmi (1967) NCLR 398
No, unless it is shown that the bank clerk or cashier was acting within the scope of his employment, then the bank will not be liable for any false imprisonment carried out by its cashier. Apparently, a cashier’s ordinary duties do not extend beyond duties across the counter. However, the bank will be held liable for false imprisonment against a customer where same was carried out by its security personnel. Ogundana V. Akinwunmi (1967) NCLR 398. Union Bank of Nigeria V. Ajagu (1990) 1 NWLR (pt. 126) 328
No, a bank manager will not be guilty of stealing merely because he grants an overdraft credit facility in excess of his assigned authority especially where there is the absence of fraud. Adereti v. Att. Gen Western Nig. (1965) NSCC 193
Yes, the bank will be liable for the action of its manager who is acting as a representative of the bank. Where another person acts on the misstatement of the manager and suffers loss, the bank will be held liable.
See Imarsel Chemical Co. V. National Bank of Nigeria (1974) NCLR 337. However, where the bank manager acts outside the scope of his authority, the bank will not be liable
No, when a customer paid a cheque to his bank and drew another for payment before the effect of the one he paid in was cleared, he is only asking for a loan from the bank. The taking of an overdraft from a bank even in breach of instructions is not more than accepting a loan. It cannot be stealing. Cuthbert V. Robert Lubbock & Co. (1909) 2 CH D 226; Adereti v. Att. Gen Western Nig. (1965) NSCC 193
A servant is any person employed by another to do work for him on the terms that the servant is to be subject to the control and directions of his employer in respect of the manner in which the work is to be done. Where the servant performs a wrongful act, such act will be held to have been done in the course of his employment;
Where the wrongful act is authorized by his employer.
Where the wrongful and unauthorized mode of doing some act is authorized by the employer. In such instances, the employer will be held liable for his servant’s act. Union Bank of Nig. V. Ajagu (1990) 1 NWLR (pt. 126) 328