Section 85(1) of the Property Law Act 1974 (Qld) does not impose a duty on a mortgagee or receiver to exercise the power of sale; it only conditions the exercise of that power if and when it is exercised. A guarantor cannot claim damages under s 85(3) for a mortgagee's or receiver's mere failure to sell the mortgaged property. The court also confirmed that a claim for debt under a guarantee does not engage principles of mitigation of loss.
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