The Garcia v NAB principle making it unconscionable for a bank to enforce a guarantee given by a volunteer who was not explained the transaction extends beyond husband-wife relationships to any relationship where the bank knows there is trust and confidence between the surety and debtor. However, the mere fact that a debtor provides financial information about a proposed guarantor, or that the parties are brothers-in-law, does not of itself put the bank on notice of such a relationship. In Australia, unlike England following Etridge, the debtor must establish that the bank was actually aware of a relationship of trust and confidence that put it on enquiry.
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