Abbott v UDC Finance Ltd - [1992] 1 NZLR 405

Agency — Power of attorney — Donors of power of attorney gave attorney power to borrow — Attorney executed loan on behalf of donors — Lender sued donors who pleaded illegality in arrangements between donors and attorney — Whether alleged illegality invalidated loan transaction between lender and donors — Whether donors bound by the act of the attorney.

Commercial law — Securities Act — Composite transaction — Purported allotment of units in a proposed thoroughbred breeding partnership invalid by virtue of Securities Act — Lender made advance to the partners in good faith — Whether existence or absence of a partnership invalidates the loan — Whether the loan could be served from the invalid proposed allotment of units in the proposed partnership — Securities Act 1978, s 37(4).

Commercial law — Credit contracts — Disclosure requirements — Attorney executed loan on behalf of borrowers — Lender made disclosure to attorney but not to borrowers — Whether lender obliged to make disclosure to borrowers personally — Whether lender obliged to make disclosure to the address specified by the borrowers for disclosure — Credit Contracts Act 1981, s 20(1).