Mr. Ajirikole who holds a bank account with Bongo Bank Ltd has opened a new account with Stanbic Bank Ltd and is seeking a loan of UGX 20,000,000 to finance a new business. Stanbic Bank approached Bongo Bank Ltd to assess the credit worthiness of Mr Ajirikole. Stanbic Bank was able to learn that Mr Ajirikole has a loan of 30,000,000 that it was having difficulty in servicing and communicated this to the latter, declining the loan application. Mr. Ajirikole argues that Bongo Bank Ltd violated his right to confidentiality and is threaeting to sue. Bongo however argues that the right to confidentiality of customers' information is not absolute.

Required:

With reference to the case of Tournier V National Provincial and Union Bank of England (1924) 1 KB 461, advise the parties.                                                     

Answer rating: 100% (QA)

In the case of Tournier v National Provincial and Union Bank of England 1924 1 KB 461 the court established the principle of confidentiality of custom... View the full answer