Westpac Banking Corporation v Rae - [1992] 1 NZLR 338

Contract — Mistake — Bank accepted bill of exchange — Mistaken assumption as to debtor's acceptance — Bank debited debtor's account — Whether bank entitled to recover from payee — Whether bank entitled to recover from debtor — Judicature Act 1908, ss 94A and 94B.

Equity — Mistake — Bank accepted bill of exchange — Mistaken assumption as to debtor's acceptance — Bank debited debtor's account — Whether bank entitled to recover from payee — Whether bank entitled to recover against debtor — Whether debtor unjustly enriched by bank's mistake — Whether inequitable to grant bank relief — Judicature Act 1908, ss 94A and 94B.

Commercial law — Guarantee — Bank accepted bill of exchange — Mistaken assumption as to debtor's acceptance — Bank debited debtor's account — Liability of debtor to repay bank — Whether guarantor also liable.