The Garcia v NAB equity requires the creditor to show reasonable grounds for believing the wife had an adequate understanding of the transaction; the knowledge of a solicitor acting for the creditor who also advised the wife is imputed to the creditor as providing such reasonable grounds. A privately appointed receiver owes a duty of good faith (not a duty of care in negligence) to the mortgagor, and where a mortgagee directs or interferes with the receiver's exercise of powers, the mortgagee is subject to the same duties. A representation to negotiate is not too vague to found liability under s 52 of the Trade Practices Act, and inherently includes a representation to negotiate in good faith. The contractual obligation to pay interest merges in the judgment, but the court may exercise its discretion under s 95 of the Supreme Court Act 1970 (NSW) to award post-judgment interest at the contractual default rate.
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