The implied requirement that banks must honour cheques and repay deposits is a result of which of the following?

Question

Quizplus · Accepted Answer

The implied requirement that banks must honour cheques and repay deposits is a result of banking practice and common law. Though there is no specific legislation on this matter, it has become a customary practice in the banking industry to honour cheques and repay deposits. Additionally, common law principles, such as the duty of care and fiduciary relationship between banks and their customers, also dictate that banks must honour their obligations to customers with respect to their cheques and deposits.

The Implied Requirement That Banks Must Honour Cheques and Repay