Pico Holdings, Inc v Wave Vistas Pty Ltd

Contract – Parties to a contract - Sole director of first respondent company was principal actor on behalf of another company in securing a loan - Director, as borrower's actor, offered to use land owned by first respondent as further security to obtain a further extension of loan repayment - No reference was made to the first respondent, or to its ownership of the land, or to the fact that the borrower's actor was the first respondent's sole director - Lender agreed to extend the repayment date - Whether first respondent was a party to the agreement - Whether a reasonable person in position of lender could have understood that the first respondent was making an offer to provide security - Whether borrower's actor was in fact exercising his authority to offer the land as security - Whether the lender supplied consideration for the first respondent's promise.

Corporations Law – ss 128(1), 128(4), 129(4), 180 and 181.