C N and N A Davies Ltd v Laughton - [1997] 3 NZLR 705

Property law — Indefeasibility of title — Registered mortgage given as security for third party's guarantee of terms of agreement for sale and purchase from mortgagee to third party's company — Terms of agreement subsequently altered without knowledge or authority of mortgagors — Company defaulting on agreement and placed in receivership — Proceeds of sale of business insufficient to meet company's debt — Mortgagee seeking to enforce mortgage — Mortgagor seeking to restrain mortgagee from exercising power of sale — Whether notwithstanding doctrine of indefeasibility of title mortgagors can sustain action in personam against mortgagee — Whether guarantee can be described as “prospective” — Land Transfer Act 1952, ss 41, 62 and 63 — Property Law Act 1952, s 92.