Banks' Duty of Care to Customers

31 Aug 2011

The update discusses the recent decision in Go Dante Yap v Bank Austria Creditanstalt AG [2011] SGCA 39.

The Court of Appeal has ruled that a private bank owed its customer a duty of care both in contract and in tort, even though the agreements entered into between the parties did not contain any express terms requiring the bank to advise the customer. However, in its judgment, the Court of Appeal expressed the view that banks and other financial institutions may, with the use of appropriately drafted disclaimers or exclusion clauses, prevent a duty of care from arising.

To read the update, please click here.