Payments and Finance Case Study Example | Topics and Well Written Essays - 3000 words

Payments and Finance - Case Study Exampleby July 07, 2009 as per terms of contract betwixt Alpha and Delta.This case is akin to the case of The Honorable Society of the center Temple v.Lloyds curse Plc, and Another (1999) I All ER (Comm) 193, in which, the English agent of a foreign bank partook of a robbed crossed cheque and credited the proceeds into the account of a trine company instead of the payee. This agent was held to have acted in negligence. The learned Court, distinguishing between the duties the agent owed to the third party vis--vis what it owed to its principal, especially when the agent was duty bound, under the ordinary course of business to take cognizance of its principals instructions. Thus, under this case, the agent was held negligible for failing to take steps to protect the payees interests. As the Court observed, This was not so where the loss arose from the agents negligence in the actual performance of the collecting banks request. 1Similarly, in this case too, Mega depository financial institution could be held... The instructions from Royal Bank to Mega Bank were to credit Alphas account with the advance money at heart a day and yet this was not done.The advance payment forms an integral part of the agreement between the seller and buyer, and the inability of the buyers to meet this clause, could, at the option of the seller, lead to cancellation of the contract. As a matter of fact, the good contract hinges, at the initial stage of the contract, on the release of the advance payment of the contract discomfit payment of 50,000 on the part of the buyers, and the inability on the part of the buyers to effectuate and confirm this payment by July 07, 2009 could, at the option of the seller, lead to nullification of the contract. The contract could be rendered void by seller collect to non-receipt of the advance payment within peg downd time that is within July 07, 2009. In this case the contract does not stipulate when the bu yer should pay in the money, but stipulates that it should be received by the seller within 7 days of the contract. In other words, it mandates the minimum time within which the payment has to be effected and in the lead the time, after which the contract may lapse. The moment the agreed period of deferral came to an end, the requirement to pay arose. (Litigation letter, 2004, para.1).In the event the sellers, Alpha, cancels the contract, the buyers, Delta is at liberty to proceed against the bank that has committed the error, that is Mega bank. From the point of view of the Grande Bank in Paris they have acted according to instructions of the buyer client, Delta. They had debited the buyers account and had, at the same time similarly sent a Payment Advice through SWIFT to its correspondent bank in UK, Royal Bank