Shotter v Westpac Banking Corporation - [1988] 2 NZLR 316

Commercial law — Credit contracts — Oppressive — Bank made demand on guarantor in respect of money owed under a mortgage — Guarantor claimed that part of the money demanded was not included in the loan which he personally guaranteed — Whether bank's demand was an oppressive exercise of a right or power conferred by contract — Credit Contracts Act 1981, s 10.

Contract — Mistake — Guarantee — Customer signed guarantee with bank under mistaken belief as to the extent of the guarantee — Whether it was a mistake as to the interpretation of the contract — Whether customer was entitled to relief — Contractual Mistakes Act 1977, s 6.

Equity — Fiduciary relationship — Undue influence — Customer gave personal guarantee to bank — Bank failed to disclose that principal debtor had other liabilities covered by the guarantee — Whether there was a fiduciary relationship between bank and customer — Whether bank had exercised undue influence.

Tort — Negligence — Duty of care — Bank and customer — Customer gave personal guarantee to bank — Bank failed to disclose that principal debtor had other liabilities covered by the guarantee — Bank failed to advise customer of effect of guarantee — Whether bank owed customer a duty of care — Whether bank was negligent.