Savill v NZI Finance Ltd - [1990] 3 NZLR 135

Contract — Breach — Misrepresentation — Condition on loan contract — Lender agreed to advance money to borrower on condition that borrower would enter into unconditional sale of property — Lender's solicitor accepted undertaking of prospective purchaser provided by borrower that property sale was unconditional — Sale did not eventuate — Whether solicitor's acceptance of undertaking was a misrepresentation which induced borrower to enter into loan agreement entitling him to cancel or claim damages from lender — Whether test of inducement was subjective one judged only from point of view of representee — Contractual Remedies Act 1979, ss 6 and 7.

Commercial law — Trade practices — Fair Trading Act — Misleading or deceptive conduct — Test to be applied — Solicitor for lender accepted undertaking of third party provided by borrower as satisfying condition of loan contract — Undertaking was subsequently not honoured — Borrower suffered loss — Whether solicitor's conduct in accepting undertaking was misleading or deceptive — Whether test as to misleading or deceptive conduct was an objective one — Whether solicitor's conduct had caused loss to borrower — Fair Trading Act 1986, s 9.