Cityland Property v Dabrah [1968]

Company sold house to tenant for £3500.
He paid £600 cash and balance of £2900 by charging
house to company for £4500, to be repaid over 6 years.
Fell into arrears.
Goff J held that although a lender could stipulate a
collateral advantage if it was fair and reasonable, in present case the agreement
imposed an extremely high premium which was unreasonable and destroyed the
whole equity.
Court re-wrote agreement.
[Goff J appeared to be uncertain whether test is
unfair and unconscionable conduct or unreasonable conduct]