Multiple choice

X deposited Rs. 20000 in his savings bank account for payment of a cheque to be presented after 20 days. The bank credited the amount as Rs. 2000 instead of Rs. 20000 and informed the customer through a statement of account. When the cheque was presented, it was dishonoured due to which the customer suffered losses. Now, X claims damages.

  1. No damages are payable as the customer had office of the mistake.

  2. Customer cannot claim damages. He can claim only the amount he deposited.

  3. Bank is absolved of its liability, when the customer does not point it out.

  4. Bank is liable and continues to be liable even when the mistake is not pointed out by the customer.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bank is not liable if the details filled by the customer are incorrect. However, in the given case, bank is liable for damages as the error is from the side of the bank. So, the bank is responsible irrespective of the individual pointing out the error or not. 

Keep practicing — related questions