A, was faced with a run on a banking house, and promised to support the bank with andpound;30,000. Note holders stopped withdrawing their money, but the bank subsequently stopped paying out.
Held: A was not liable to an action by individual holders of bank notes, under the doctrine of privity of contract.
Citations:
104 ER 1124, (1812) 16 East 356
Jurisdiction:
England and Wales
Contract, Banking
Updated: 09 May 2022; Ref: scu.222003
