Tidal Energy Ltd v Bank of Scotland plc [2014] EWCA Civ 1107, [2014] All ER (D) 33 (Aug)
Subject to any contrary express terms, a customer who used CHAPS was taken to contract on the basis of the banking practice that governed CHAPS transactions. There was a clear and settled practice that the receiving bank in a CHAPS transaction did not check the beneficiary’s name for correspondence with the other identifiers. There were good commercial reasons why that practice was adopted.
