EXPLAIN IN YOUR OWN WORDS THE FAIR PRINCIPLES EXPRESSED BY DIXON J IN YERKEY V JONES AND DISCUSS HOW THESE PRINCIPLES IMPACTED THE HIGH COURT'S DECISION IN GARCIA V NATIONAL AUSTRALIA BANK. In the case of Yerkey v Jones 1 (Yerkey v Jones), the ruling in Dixon J established a principle which operates in certain circumstances where a married woman provides security for her husband. Although the principle has been the subject of much criticism in more recent times, it was reapplied in the case of Garcia v National Australia Bank. (Garcia v NAB).2 In Yerkey v Jones, Estyn and Florence Jones entered into an agreement to purchase a poultry farm located in Payncham from John and Mary Yerkey. The purchase price was to be paid in installments and a condition of the agreement was that a portion of the purchase price was secured by a mortgage on a separate property in Wakerville owned by Mrs. Jones – the agreement required Estyn Jones to undertake who would arrange for his wife to enforce the mortgage. Mr Jones "did not prosper in the new venture" and after 12 months of trying to run the poultry farm, the venture was abandoned and the property was handed over to caretakers. Mr. and Mrs. Yerkey brought an action to recover the principal and interest on the second mortgage. Both Mr and Mrs Jones defended the action. Mr Jones was unsuccessful at first instance and while Mrs Jones was successful at first instance, she was ultimately denied relief in the High Court. The importance of this decision is found in the judgment of Dixon J, which articulates the existence of a special equity which protects the wife by acting as guarantor in relation to her husband's debts. A... middle of paper......Reference TableA Books• Phillip Clarke and Julie Clarke, Contract Law Commentaries, Cases and Perspectives, (Oxford University Press, 2nd edition, 2012) 432-3.B Cases • Garcia v National Australia Bank Ltd (1998) 194 CLR 395. • Yerkey v Jones (1939) 63 CLR 649.C Legislation • Married Women's Property Acts D Other • Wikimedia Foundation Inc, Married Women's Property Act 1882 (5 March 2014 ) Wikipedia .• Australian Legal Information Institute, Garcia v National Australia Bank Ltd [1998] HCA 48; 6 CCL 81; 194 CLR 395; 155ALR 614; 72 ALJR 1243 (6 August 1998) Austlii .• Legal exchange, extension of the Garcia principle (2 June 2012) Legal exchange .