Goss v Chilcott - [1996] 3 NZLR 385

Contract — Consideration — Total failure of consideration — Loan agreement — Whether obligation to repay capital separate from obligation to pay interest — Whether obligation to pay capital sum apportionable — Restitution of benefit following total failure of consideration — Whether borrower unjustly enriched.

Contract — Formation — Oral agreement to borrow additional upon giving of security by way of registrable mortgage — Mortgage executed but not registered — Whether oral agreement merged in executed mortgage.

Contract — Discharge — Unauthorised alteration of unregistered mortgage after execution — Whether avoidance of liability under unregistered mortgage.

Contract — Quasi-contract — Money advanced on security of unregistered mortgage — Mortgage discharged by reason of fraudulent alteration of advance not repaid — Total failure of consideration — Whether borrower unjustly enriched — Whether borrower liable to repay money advanced — Whether borrower liable to pay interest thereon — Whether lenders had changed their position so as to render it equitable to require restitution — Judicature Act 1908, s 94B.

Equity — Unjust enrichment — Money advanced on security of unregistered mortgage — Mortgage discharged by fraudulent alteration but advance not repaid — Whether borrower unjustly enriched — Whether borrower liable to repay money — Whether borrower liable to pay interest under Judicature Act 1908 — Whether change of position — Judicature Act 1908, s 94B.