Asset lending principles under the Contracts Review Act 1980 (NSW) are not confined to borrower-lender relationships but extend to guarantors who provide security without benefit from the underlying transaction. A lender's failure to enquire into a guarantor's capacity to repay, where there is a real and significant risk of default by the borrower, supports a finding of unjustness. No moral obloquy or mala fides on the part of the lender is required; the relevant enquiry is whether the contract is unjust in all the circumstances.
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