National Australia Finance Ltd v Fahey - [1990] 2 NZLR 482

Agency — Power of attorney — Donor of power of attorney gave attorney power to borrow — Attorney executed security in name of donor — Lender sued donor who pleaded illegality in arrangements between donor and attorney — Whether alleged illegality upon contractual relationship between lender and attorney — Whether the donor was bound by the act of the attorney — Property Law Act 1952, ss 134 and 135.

Commercial law — Credit contracts — Disclosure requirements — Acting under powers of attorney, attorney executed security on behalf of borrowers — Lender made disclosure to attorney but not to the borrowers — Whether lender was obliged to make disclosure to the borrowers personally — Credit Contracts Act 1981, s 16(2).