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unconscionable conductasset based lending
Stubbings v Jams 2 Pty Ltd
(2022) 276 CLR 233
Key Principle
An asset-based lender engages in unconscionable conduct (in equity and under statute) where it deliberately structures its lending through intermediaries and relies on formal certificates of independent legal and financial advice to wilfully shut its eyes to a borrower's obvious special disadvantage, since substance prevails over form and such studied ignorance does not insulate the lender from knowledge of vulnerability.
Area of Law
insolvency
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