Palenzuela v Palaje [2009] NSWSC 1371

In this case the lender sued the guarantor and sought to enforce an equitable mortgage over the guarantor’s property which secured the guarantor’s obligations under the guarantee. The guarantor responded by raising a Contracts Review Act defence. The judge gave the defence short shrift, commenting:

There was no evidence to suggest that the borrower lacked understanding of the nature and extent of her obligations under the agreement. She demonstrated experience with the ownership of property, as well as an understanding of the obligations of a mortgagor and guarantor. In my opinion, the claim was without merit, and must be dismissed.

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