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CONSENT Contract Law

Bhagwani Bai v. LIC, Jabalpur, AIR 1984 MP 126

ISSUE:

Whether the plaintiff's husband deliberately suppressed the fact of his three lapsed policies which he should have disclosed and thereby attained the new policy by fraudulent misrepresentation?

Whether the concealment of this fact had any bearing on the risk undertaken by the defendant corporation by insuring his life which it would not have done had they known about this?

RULE:

A contract of Insurance must be done under utmost good faith on the part of the person taking insurance for his life and is under an obligation to disclose all material facts which may have a bearing on the risk undertaken by the insurer.

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CONSENT Contract Law

Esso Petroleum v Mardon, [1976] QB 801

ISSUE:

Whether the estimate made and presented by the defendants upon which the plaintiff relied and took the lease to be considered as a collateral warranty to the contract of the lease?

RULE:

Where a party makes a statement based on the experience and expertise that it has as its disposal and intends that the other party should act on it and he does act on it, it can be interpreted as a warranty.

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(viii) Mistake: Contract Law

Tarsem Singh v. Sukhminder Singh, 1998 3 SCC 471

ISSUE:

Whether the agreement between the parties was void and consequently can the earnest money received by the petitioner stand forfeited to him?

RULE:

Parties under a mistake as to a matter of fact essential to the agreement from the very inception but realizing the mistake at a later stage amounts to the agreement being discovered to be void.

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(viii) Mistake: Contract Law

Smith v. Hughes (1871) LR 6 QB 597

ISSUE:

Whether Mr. Hughes is entitled to pay the remaining amount or can he avoid the contract because Mr. Smith had not delivered the type of oats that the defendant had expected?

RULE:

Mere silence as to anything cannot be taken as misrepresentation. If the buyer has full opportunity of inspecting the products contracted for and thereupon form his judgment, and if he relies only on his own judgment, the rule caveat emptor applies.
In the absence of any discussion about the quality of goods, an objective test revealed that a reasonable person will believe that the sale would be of good quality oats.

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(ix) Non-Est-Factum: Contract Law

Saunders v. Anglia Building Society [1970] 3 All ER 961

ISSUE:

Can the appellant regain her property by using the defense of "non-est-factum"?

RULE:

For the defense of "non-est-factum" to succeed, a person must show that the agreement that they signed was done without any negligence of their own and that the document was radically and essentially different in substance or kind from the one which they purported to sign.

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