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Mr. H and Mr. P started a stationery supplies business as a partnership named “H-P Stationery Mart”. The partnership had availed several facilities from their selected bank (AZ Bank) including a business credit card line and a business trading account etc. Both partners were nominated and authorized to operate the account. The partners became involved in a financial dispute and decided to cease the operations of the business together. They decided both to dissolve the partnership or Mr. P will continue the business as a sole proprietor. Later option was opted with mutual consent and all the relevant changes in ownership forms for the registered business name were filed.
Mr. P’s dispute arose with AZ Bank when he deposited funds earned as a sole proprietor into the partnership account, and drew cheques against these funds. As soon as the bank became aware of the partnership dispute, it froze the account and dishonored the cheques of Mr. P. Mr. P argued that the bank should not have frozen the account. They should get confirmation from me and then take any action.
Being a student of banking laws and practice you are required to judge the matter and give your opinion that customer is right or whether bank has taken correct action for Mr. P’s account.
Note: Support your answer with logical reason.
· Your discussion must be based on logical facts.
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· Use the font style “Times New Roman” and font size “ 12” .
· Your answer should be relevant to the topic i.e. clear and concise.
· Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
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Please Discuss here about this GDB.Thanks
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We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.
koi idea hi dy dain:-(