placeholder-image coin

Clydesdale Bank v Black, [2002] ScotCS 129

Clydesdale Bank v Black, [2002] ScotCS 129


Citation: Clydesdale Bank v Black, [2002] ScotCS 129

Link to case on WorldLII.

Rule of thumb 1: If an organisation is part of an association, and the association has a code of conduct/ethics, do the organisation actually have to follow this with their clients? Yes, these are deemed to be implied terms of contract.

Rule of thumb 2: Does the Code on Banking practice have any legal significance? Yes, these are implied terms of contract which banks must follow.

Judgment:

Banks are expected to follow the good banking trade association code which is deemed to be implied terms of the contract, and if they do not do so, they are expected to have a good reason for not doing so, ‘The reference which Lord Clyde makes to the practice of banks is a reference to the Code on Banking Practice adopted by banks in Scotland in March 1992. The terms of paragraph 12.1 of that Code are set out in O'Brien at p.197-8 and it is apparent that the terms of the guarantee and Standard Security in the present case follow almost word for word the recommendation in the Code’, Lord Sutherland.

centered image

Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.