THE DUTY OF CARE OF BANKS

Banks are under the obligation to exercise due care

In the Dutch Caribbean, no separately defined body of law exists with regard to the relationship between a (commercial) bank and its customer. The standard general terms and conditions applied by banks in the Dutch Caribbean have an important function in the legal relationship between banks and their customers. They enter into effect once explicitly or implicitly accepted by the customer.

According to most general conditions “the bank shall exercise due care on rendering its services. In doing so the bank shall reckon to the best of its ability with the client’s interests, it being understood that the bank shall not be bound to avail itself of non-public information known to it, this to include price-sensitive information.

More important, however, Section 7:401 of the Civil Code and more in general the requirements of reasonableness and fairness (‘good faith‘; Section 6:248 Civil Code) impose an obligation on the bank to exercise due care in all transactions with the customer.

Karel Frielink
(Attorney/Lawyer, Partner)

(21 November 2015)

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