Shivas v Bank of New Zealand - [1990] 2 NZLR 327

Contract — Duress — Economic duress — Guarantor sought to avoid guarantee with bank on grounds of economic duress — Whether some degree of commercial pressure by bank amounted to economic duress.

Contract — Mistake — Guarantee — Guarantor signed guarantee with bank allegedly under mistaken belief as to extent of accommodation which bank would provide customer — Whether such a mistake would have resulted in substantially unequal exchange of values — Whether guarantor and bank had made different mistakes about the same subject-matter — Whether, if guarantor had not properly read the guarantee before signing, it was a mistake in the interpretation of the contract — Whether guarantor was entitled to relief — Contractual Mistakes Act 1977, ss 4 and 6.

Equity — Fiduciary relationship — Bank and guarantor — Whether bank had a fiduciary duty to intended guarantor to disclose facts affecting the risk.

Tort — Negligence — Duty of care — Bank and guarantor — Whether bank had a duty of care to intended guarantor to explain the guarantee, warn the guarantor, or recommend to guarantor that he obtain separate advice.