M05Contract termscases

Question 1

£40,000 jewellery in glove box of locked car = (reasonable precautions)

Answer 1

Sofi v Prudential Assurance Company Ltd (1993)

Question 2

Breach of warranty voids policy from date of breach BUT INSURANCE ACT 2015 SAYS NOW ONLY SUSPENDS COVERAGE

Answer 2

Bank Of Nova Scotia v Hellenic Mutual War Risks Association (Bermuda) Ltd (The Good Luck) (1992)

Question 3

Not deny consumer claim for breach of warranty unless contributed to loss

Answer 3

ICOBS Rules

Question 4

Contra proferentem – ambiguous term construed against drafter

Answer 4

Houghton v Trafalgar Insurance Co Ltd (1954)

Question 5

Policy will not indemnify some one for illegal or reckless acts

Answer 5

Gray v Barr (1971)

Question 6

2 cab shifts suspensive condition not warranty ALTHOUGH NO DIFFERENCE NOW FOLLOWING INSURANCE ACT 2015 SO MAY BE IRRELEVANT

Answer 6

Farr v Motor Traders’ Mutual Insurance Society (1920)

Question 7

Cash kiosk – suspensive condition not warranty ALTHOUGH NO DIFFERENCE NOW FOLLOWING INSURANCE ACT 2015 SO MAY BE IRRELEVANT

Answer 7

CTN Cash & Carry Ltd. v General Accident Fire And Life

Question 8

Insurer had to indemnify the insured despite the breach of a (mere) condition, but was also entitled to deduct 15% to reflect the prejudice suffered as a result of the breach.

Answer 8

Milton Keynes v. Nulty (2013)

Question 9

The court held that the insurers could avoid the policy as far as the claimant was concerned but allowed the building society, which was also insured, to recover, since the interest of the building society was different and the policy was composite.

Answer 9

Woolcott v. Sun Alliance & London Insurance (1978)

Question 10

the insured had had smuggled insured property into the UK without paying duty: this made them liable to forfeiture., Court held that the claimant could not recover for the theft of these articles when stolen as would profit from an illegal act.

Answer 10

Geismar v. Sun Alliance (1977),

Question 11

Statement that the proposal would be the ‘basis of the contract’ had the effect of turning the statements on the proposal into warranties.

Answer 11

Dawsons Ltd v. Bonnin (1922)

Question 12

Insured can not benefit from his criminal act. Insured committed suicide (then illegal) in order to obtain policy proceeds for his beneficiaries.

Answer 12

Beresford v. Royal Insurance Co. Ltd (1938),

Question 13

Mistake

Answer 13

Beach v. Pearl Assurance Co. Ltd (1938)

Question 14

Composite policy

Answer 14

Arab Bank plc v. Zurich Insurance Co. (1999)