Wadsworth Norton Solicitors Nominee Co Ltd v Edmonds - [1992] 1 NZLR 596

Property law — Mortgage — Solicitors' nominee company — Purchasers borrowed money from both appellant and respondent for purchase of house — Respondent's loan to purchaser financed by mortgage of his own property to appellant — Respondent's mortgage guaranteed by purchasers — Appellant advanced money direct to purchasers' account — No such advance from appellant to respondent — Respondent's mortgage contained the phrase "in consideration of principal sum lent" - Whether the respondent's mortgage was unenforceable for want of consideration — Whether the term "mortgagor" incorporated both the respondent and the purchasers as covenantors — Whether implied authority to pay money direct to purchasers.

Contract — Consideration — Mortgage — Respondent borrowed money on mortgage from appellant to assist purchasers to purchase house — Purchasers also borrowed money from appellant for same purpose — Appellant advanced money direct to purchasers' account — No such advance from appellant to respondent — Whether the respondent's mortgage was unenforceable for want of consideration.