8: Warranties and other terms, void and illegal contracts, joint and composite insurance

Question 1

NATURE OF WARRANTIES

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

(Warranties and Other Terms)

Answer 1

• House of Lords held that breach of a warranty terminated cover automatically from the date of breach and as a result terminated the insurance policy.
• House of Lords did not state that this rules applies to non-marine, but it has been assumed for subsequent cases.