Economic duress – what it is, and what it is not

Customers in disputes with their lender often raise economic duress in circumstances where a lender attempts to take enforcement action. The potential ramifications are significant because a successful claim of economic duress can render the relevant agreement voidable. However economic duress is not simply the application of economic pressure applied by one contracting party over […]

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Borrowers punished for behaving unconscionably in taking advantage of a lender’s mistake

The New South Wales Supreme Court decision of Citigroup v Wernhard [2019] NSWSC 132 considers whether certain conduct by the borrowers was unconscionable (as against a lender). Borrowers sold one of three properties that was held as security for loans to them, but the lender mistakenly released mortgages over all three. The borrowers noticed the mistake, subsequently sold […]

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Joint and several liability: effect of compromising the debt against one debtor

If a lender agrees to compromise its debt with one debtor who is jointly and severally liable for the debt with another debtor, does this compromise the whole debt? Not if the compromise is appropriately documented.   What is joint and several liability? Joint and several liability is where each debtor to a common debt […]

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