Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q12: Which law governs the Principal-Agent relationship between a banker and customer?

A
Transfer of Property Act, 1882
B
Indian Contract Act, 1872
C
SARFAESI Act, 2002
D
Trust Law
✅ Correct Answer: B
Indian Contract Act, 1872.
The Indian Contract Act, 1872, governs agency relationships.
Situations involving a Garnishee Order often test this aspect of Banker Customer Relationship MCQs.