M05 Insurance Law Coursework Assignment: Complete Solution

This document presents a comprehensive solution to an Insurance Law M05 coursework assignment, addressing various legal issues. The assignment covers topics such as negligence and duty of care, specifically examining the liability of a local authority and available remedies for a child. It also analyzes the legal nature of online promotions, focusing on invitation to offer and revocation, supported by relevant case law. Furthermore, the assignment delves into contract law concerning estate management fees, exploring issues arising from a client's failure to pay and the agent's right to remuneration. The solution provides detailed explanations, justifications, and references to relevant legal principles and case law to support the answers to each question.

Insurance Law M05

Table of Contents
MAIN BODY...................................................................................................................................2
Question 1- ............................................................................................................................2
Question 2 ..............................................................................................................................4
Question 3 ..............................................................................................................................5
Question 4 ..............................................................................................................................7
Question 5 ..............................................................................................................................9
Question 6 ............................................................................................................................11
Question 7 ............................................................................................................................12
Question 8 ............................................................................................................................14
Question 9 ............................................................................................................................16
Question 10 ..........................................................................................................................17
REFERNCES ................................................................................................................................19
MAIN BODY
Question 1-
The question states that the local authority had carried out the act of negligence. The
issue here is of the breach of duty of care which local authority was owing towards the general
public whereas a breach of the same can result in certain damages and losses. As reported to
Parson, et. al, MO5 (2021/22)Ch 2 D1), the applicable law on this topic is related to the duty of
care. The responsibility of care is said to be owed by one toward the other individuals or to the
people at large. One such primary example can be the duty of care that needs to be exercised by
the drivers on the road. Thus the acts which fall outside the said standards are said to have
resulted in the negligent ones. In Donoghue v. Stevenson(1932)(Example 2.11, Parson et al, M05
(2021/22)Ch 2 D1) the house of lord held that the manufacturers owe a duty of care towards their

customers or the ones who consume the products. This was the very first case where the new
category of negligence was laid down. Other than this the case also established the other general
principle which is the neighbor principle or the neighbor test as given by Lord Atkin. Where he
contended that one must not injure their neighbor and must take reasonable care for the
avoidance of such acts or omissions which stands reasonable to foresee the likely damages.
Moreover, given the scale of the given scenario, there lies the duty of care on the part of local
authorities which was foreseeable by them, and thus while applying the case of Donoghue v.
Stevenson( 1932), it is likely that the local authorities are entitled to commit the tort of
negligence by avoiding their general duty of care towards the maintenance of the park and its
equipment.
b. Legal remedies which are being available for the child under tort are like.
According to Parson, et. al, MO5 (2021/22)Ch 2 N), remedies tumble into two primary concepts:
judicial remedies and non-judicial remedies. The first is judicial remedies, which include
injunctions, the return of a certain property, and most commonly damages. These are some of the
remedies that the court gives to the unfairly treated party, the injured party. The amount of
damages here corresponds to the amount that the defendant must pay to the plaintiff to return the
plaintiff to the actual position as before. Damages are considered to be one of the basic remedies
that can be stored as a result of a claim. As in this case, the local government will determine that
everyone who commits any crime is controlled and dealt with there and that the child has been
seriously harmed as a result of the negligence of the authorities. It was determined that there
were all obligations and responsibility requirements were performed during that period.
Therefore, parents of children can take action against them and ultimately claim damages for
negligence and injury caused to the child, following the Parson, et. al, MO5 (2021/22)Ch 2 N 1C
). Physical injuries inflicted on any of the victims are counted as emotional and physical factors.
Therefore, in this case, the child will receive compensation as if it were a contractual liability and
will be able to achieve and manage all work and compliance accordingly. Remedies are available
to children in connection with personal injuries. Moreover, In addition to this, according to
Parson, et. al, MO5 (2021/22)Ch 2 N 1A ) the child can also mark the claims under the head of
special and general damages. The category of general damages does not require the process of
pleadings and the strict proof reason being they comprise of such losses which in a general sense
can be presumed to be acquired as a result of the tort. Some of the basic instances of this can be

injuries or any suffering resulted from any car accident. The statement special compensation is
also utilized to set forth damages which are
able of precise financial classification, as clear from general redress, which cannot be
precisely determined but only measured on the ground of what a sensible man would consider
suitable to compensate for the loss.
Question 2
(a) Explain, with justification, the legal nature of the online promotion. Refer to one
relevant case in support of your explanation.
In the question, relevant area to be considered here is invitation to offer. The offer will be
successful in written form, by mouth, made by activity, to any one of the individuals, to the unit
of masses, or the nation at large. In this situation the offer is made to the public as a whole, it is
an open offer so anyone who wants to agree can accept this offer. It is mentioned in (Parsons et
al, M05 (2021/22) Ch 3 B 2C) that when an substance is communicated to everyone through
online promotion and it comes into everyone's knowledge. The time duration in this offer is
prescribed, if a reasonable time passes then no one can accept the offer. The reasonable time if
not prescribed then it depends on the circumstances. The offeror can withdraw the offer at any
time before it is accepted. The revocation of the offer can be made weather they have been
secure to keep the substance ajar for a sort of period. The annulment is essential to be
communicated by any means of behavior, the communication has to be made through the offeror.
In Carlill v. Carbolic Smoke Ball Company (1893), the Fume Ball Company made an offer in
the publicity that company will award one hundred pounds to the person who uses these balls as
told for a specific time. In this case the court held that whether this offer had been made to the
public as a whole, Mrs Carlill had not communicated her acceptance of to offer, all though she
complete all the terms through her actions, a valid contract exists and was entitled for the reward.
In this situation Adisa accepted the offer through her act, CD Ltd. to give a 10% discount as
communicated because revocation of offer was not communicated to anyone. she purchased that
policy before time because of a 10% discount on their annual premium. Acceptance to offer must
be done through some positive act, it can not be accepted by silence or by doing nothing.

(b) Explain, with justification, whether CD Ltd was legally entitled to remove the discount
in the promotion before 31 March.
The question involves an invitation to offer and revocation of the offer. The CD Ltd have the
legal authority to remove discount by 31 March, this general rule of revocation was coming
under Payne v. Cave in this case the facts are such that this offer can be revoked any time
before anyone accepts the offer. The revocation has to be communicated directly or indirectly to
the offeree before the acceptance takes place. As mentioned in (Parsons et al, M05 (2021/22)
Ch 3) This offer is been able to withdraw whether it is specifically mentioned that it will remain
open for a fixed period. If an offeree have paid some consideration or given some value to
keeping the offer open. The CD Ltd has revoked the offer before 31 March, if someone accepted
the offer in time between that invitation to offer and revocation of the offer. If the offer is
revoked in this situation then the offeror comes in breach, they have to let negotiation open and
they may have to pay compensation for revocation before time. The declaration will come into
creation when an offer is recognized, with each of the terms of contract is been accepted. The
acceptation can not be communicated by any reliable source and revocation have to be
communicated through some reliable source. In the case of Routledge v. Grant (1828), offer or
withdraw the offer ahead the limited time granted to offeree for acceptance. In these contracts, it
is not compulsory for party to undertake the action but it is not fair if the promisor, has the power
to lift his offer ahead the offeree completing his portion of the contract. In Errington v.
Errington (1953) the court decides that there is an prior commitment for not to lift if the action
has been done, that person could not pull back his offering in Errington v. Errington but he was
free to revoke the offer in Routledge v. Grant. In case of Byrne v. Van Tienhoven (1880) it was
held that an offering can be renege any time ahead accepted and it have to be communicated via
any means. In unilateral contract where an offer is made to a public at galactic then same
promotion have to be granted to the annulment of the offer. When same promotion is done for
the annulment as like the offer.
Question 3
(a)Identify, with justification, the legal issues arising from the client's failure to pay the
estate management fees.

The EF Ltd. (agent) have not been paid fees for there conduct done for their client because of
this they lost their revenue. The principal and agent have express or implied agreement between
them and the agent performs duty on behalf of the principal, then the right to remuneration and
right to indemnity will apply, (Parsons et al M05 (2021/22) ch-4, E, E1). The amount is
remunerative or the criteria on which administrative body is to be collectible, the principal has to
pay some nominal nonconsumer or some of the professional rates or, there is nothing prescribed
before then the court can fix a reasonable amount if necessary. EF Ltd. Received payment
without any delay from this client for finding a buyer in past. This is their regular course of
business and both the parties have trust in each other. The agent has done his part of duty and the
principal has not paid for his duty. This is an implied contract where the agent has done a piece
of work which have not ordinarily been done for nil. According to (Parsons et al M05
(2021/22)ch-4, E, E2) The right to indemnity is applicable if the agent has done some expenses
to perform their duty. They will lose the right to indemnity if the act will be ratified by the
principal, if there is a breach of duty from an agent, and if the act is illegal or void by law. The
agent and principal come into an implied contract, this contract is legally binding and
enforceable as an express contract. But enforcement of this contract is difficult as the contract's
specific terms have not been expressed. The courts will recognize an implied in-law contract
where one of the parties is unjustly enriched at the expense of the other. Generally implied
contract happens when one party accepts benefits from another party, and knows that the
providing party expects to pay for the provided benefit. These are legally binding contracts just
as to express contracts. These contracts are based on previous agreements.
(b) Explain, with justification, the legal issues arising from EF Ltd finding buyers and not
being paid the relevant fees.
The inquiry states that EF Ltd. If not paid for the buyers find the client's property was not paying
fees. The agent allows to receive the agreed amount, or if nothing has been agreed upon a
reasonable remuneration until act gratuitously. If there is not any specific contract then the right
to remuneration takes place when a cause has been done what he has decided to do. The agent
has all the right to compensate for all consequences of any law-abiding acts done by him within
exercising the authorization made through him. They have the right to indemnify the issue
arising against the consequences of any act done by him in good belief and it turning out to be

deleterious to the exact of the third party. The agent has the right to be remunerated for any
misconduct uninterrupted by him with the help of the principal of neglect or want of skill. The
agent has all the right to halt the goods in theodolite if he buys these goods with his personal
money or by the acquisition of personal obligation for the value of goods and the principal has to
become bankrupt. The agent has all the right to claim earnings on maneuver of this work,
whatever the consequences arise but if he is found guilty of fraud or misconduct then he has no
right to earnings, and he has to be held liable for compensation regarding the principal for any
such losses, (Parsons et al M05 (2021/22) Ch 4). the agent also has the right to indemnify
opposite the consequence of each legal acts done through him in exercising of control made upon
him. The broker is a representative of his principal, he has the right to indemnify against every
act done by him in good belief. One individual provides employment to some other to do an
enactment and the agent does that act in good belief. In case of emergency, the agent has the
right to do such an act which can defend the principal from the failure. He also has the right to
leave his authority by giving notice to the primary. The agent will continue his conduct as an
agent for a specific time period if there is prior annulment takes place without any sensible
cause. The most reliable responsibility of an agent is to act according to the directions given by
the principal, and if there are no instructions then he should work according to the custom
prevailing in the agency.
Question 4
(a) Identify, with justification, whether Jasnoor has an insurable interest in each of the
following
The luxury watch, according to Parson, et. al, MO5 (2021/22)Ch 5 D2), talks about the
discovery and people in ownership. Every individual who finds any property or goods is entitled
to have the right to ensure the same reason being the possession renders the finder the right over
the found goods which is improved than that of any different person than the actual owner. In
every aspect, the attainment of possession lies at the upper hand which in itself gives the right to

insure it. Moreover, as per English law, one can ask for an insurable claim even in the scenarios
where the possession stands wrongful.
The life of Kaya, according to Parson, et. al, MO5 (2021/22)Ch 5 D1A), as per English laws no
other family relationship than that of the spouses gives automatic rise to the right of insurable
interests. For instance, a parent cannot lawfully assure their child, and similarly the child cannot
also assure their parents. Hence, in the given scenario as well, Jasnoor cannot arrange the
insurance policies for her daughter in her own name.
The sports car, according to Parson, et. al, MO5 (2021/22)Ch 5 D2), any individual who has
the judicial control of goods or any property which belongs to others is addressed as the bailee.
As the bailee is entitled to only hold the goods for some specific purpose or time hence they
cannot claim the insurable interest in such cases. Similarly in the given scenario, Jasnoor is not
entitled to arrange the insurance policies for the car of her friend in her own name reason being
she only enjoys the responsibility to take reasonable care of the car.
The life to Graham, reported to Parson, et. al, MO5 (2021/22)Ch 5 D1B), an employee is
entitled to insure the life of their workers but their insurable interest stands limited to the amount
disclosing their salary or wages for the nominal time period of notice under their agreement of
occupation. Moreover, the said principles stand applicable only to the case which comprises the
existence of an employment contract. Thus, Jasnoor can also arrange the insurance policies for
its existence of Graham.
(b) Discuss the potential effect of the mistake regarding the age of Jasnoor's part-time
cleaner on the
validity of the life insurance policy.
Accordant to Parson, et. al, MO5 (2021/22)Ch 6 A1), any person who makes a false
statement in order to mislead the other party is addressed as the fraudulent misrepresentation but
in such cases, the insurer stands entitled to prove the occurrence of such fraud or
misrepresentation. Moreover, in matters of business protection, the insurer can ask the redress
irrespective of the fact that the type of deception is negligent, innocent, or fraudulent.
Furthermore, in the cases of consumer insurance, the insurer is eligible to seek the remedy only
for the cases of negligent and fraudulent misrepresentation reason being the Act of 2012 entails
the responsibility to take sensible care rather than the deception of the material facts. Therefore,

in such matters, the innocent party which is the insurer possesses the right to claim the remedy
and as a result of which he can keep the premium with himself that has to be paid to the
claimant. In (Example 6.1, Parson et al, M05 (2021/22)Ch 6A2), the person is said to carry the
act of misrepresentation in insurance, when the proposer for the purpose of life insurance does
not reveal their real age and instead of 25 years states it to be 35 years. But in the, given facts as
Jasnoor mistakenly addressed the wrong age to the insurer and hence can ask for the claims as
she unknowingly states the fact of her actual age of Graham.
(c) Discuss the potential effect of the concealed modifications on the validity of the
insurance policy
for the sports car. Refer to one statute in support of your discussion.
The facts of the scenario, mainly with respect to the concealed modifications, fetches the two
concepts. Where accordant to Parson et al, M05 (2021/22)Ch 6 B 1), the proposer is the one who
acknowledges the actual understanding as well as the knowledge regarding the subject matter for
which one is seeking the insurance. Thus, he has a general obligation to bring out all the
concerned real facts to the insurer in order to fetch further claims. In other (Example 6.3, Parson
et al, M05 (2021/22)Ch 6 B 1), if one person wishes to get their car insured rather than for the
purpose of buying or selling, then the insurer will only get to know the actual facts till the extent
claimant informs them. Similarly, if the car has been altered or it is not roadworthy, the assure
will have no functional means of intended unless the originator discloses the info. Therefore, in
accordance with the stated example, it can be ascertained that the insurer can retain the amount
of claim on knowing the fact of concealed modification of the car.
Question 5
(a) Explain with justification, the effect of the damage to the locks as well as Martin's
cleaning and oiling of the racing bicycles on the policy and the claim.
The question is demanding an explanation on the outcome of destroying the locks of the garage
by the vandals and Martin's act of cleaning and greasing the bicycles without Sean's knowledge
on the insurance policy and the claim over that security ensured by the policy. The issues here
are whether the insured person is entitled to the claim and continuance of the insurance contract

in terms of the policy. According to Parson, et. al, MO5 (2021/22) Ch 7 B2A the concept of
Condition Precedent is given which states that if the insurer fails to abide by the terms and
conditions specified in the contract, then the policy will not be executed. In the above case study,
the following conditions are being provided in the policy the locks of the garage must be kept up
from time to time, servicing and repairing of the racing cycle must be done by a competent
person that is the racing bicycle engineer and the insurer should give a notice of claim soon after
the knowledge of any damage or destruction. The above conditions based on which an insurance
contract has been made were not being fulfilled by the insurer because the locks were repaired by
Martin (Sean's friend) which is not done properly and it was turned into a temporary repair. The
maintenance of the racing bicycles was also done by Martin who is not a certified engineer for
the purpose of repairing racing bicycles. Sean did not serve any notice of claim to the insurer.
Now, from the above observations, it is clear that Sean is not entitled to claim the insurance
policy as he was unable to adhere to the conditions of the policy. In Example 7.12, Parson, et. al,
MO5 (2021/22) Ch 7 B2A, if the insurance policy will not be executed until the premium is paid
by the insured. Accordant to Parson, et. al, MO5 (2021/22) Ch 7 B2B the concept of Condition
Precedent to Liability states that if the conditions of the policy are not fulfilled by the insured
person, then the insurer can be released from the liability on their part. It is totally upon the
discretion of the insurer. In this case study, Sean failed to comply with the policy terms and for
the same, it all depends upon the insurer to continue the insurance contract or not.
(b) Discuss the possible consequences of the delay in notifying the claim to the insurer.
The question requires an explanation regarding the after-effect of the late notification of the
claim by the insured to the insurer. Accordant to Parson, et. al, MO5 (2021/22) Ch 7 B2A the
concept of Condition Precedent is provided which states that the plan of action will not come
into outcome if the insured person neglect to accomplish the terms and conditions of the policy.
And the terms of an insurance contract always specify the limitation period in which the notice
of the claim is to be provided to the insurer in case of any damages. Further, the insured will not
be able to exercise the claim irrespective of the fact that how much loss is incurred by the insured
person. Accordant to Parson, et. al, MO5 (2021/22) Ch 7 B2B, the insurer is eligible to
discharge from the liability of recovering the policy amount, if the terms of the policy are not

fulfilled on the part of the insured. It is totally upon the consideration of the insurer, whether to
proceed with the insurance contract or to terminate the policy by not fulfilling the obligations on
their part. In the above case study, Sean failed to meet the requirements of the policy on the basis
of which the insurance contract was being made between the insurer and the insurable person.
The insured did not provide the prior notice for claiming the policy to the insurer in the
reasonable time which was specified in the policy itself. For that reason, if the insurer or the
insurance company refuses to comply with their liability then the insured that is Sean will not be
able to question them so as to fulfill the financial obligation on their part.
Question 6
(a) Identify, with justification, the legal doctrine applicable to the claim in respect of the
damage
caused to the bridge
In accordance with Parson et al, M05 (2021/22)Ch 8 ), the doctrine which stands applicable to
the given facts is of the doctrine of Proximate cause. Further, the term as per Parson et al, M05
(2021/22)Ch 8 C 2), has been described as the direct or immediate origin of the loss. In easy
terms is the primary origin of the loss or the loss which stands most coercive in its effect.
As per the said doctrine, the loss or damage which is in concern must be the direct outcome of
the action of an insurance risk if the case if the insurance is to react. In (Example 8.10, Parson et
al, M05 (2021/22)Ch 8 C), a road mishap may be the consequence of the conjunct result of
haphazard driving, poor road surface, terrible weather, or inadequate warning signs on the road,
etc. therefore, in order to ascertain the intention of the parties, it is required to consider both the
perils insured as well as the perils excluded by the insurance policy. Similarly for the given case
scenario of the question, in order to claim the premium by the insurer for the damages caused by
the accident to the bridge the principle which stands applicable is the doctrine of proximate
cause.
(b) Explain, with justification, the effect of the bus driver's exaggeration of their injuries on
his claim.

In accordance with Parson et al, M05 (2021/22) Ch 8 D), the exaggeration of loss is said to be
made when the claimant or the insured magnifies the amount of loss. The said acts are
considered fraudulent. Moreover, (Parson et al, M05 (2021/22) Ch 8 D 1 A), defines insurance
fraud as the acts when one exaggerates or invents the demand or does not disclose the fact in
order to have the low-budget cover. There lies no specific definition of the term fraud therefore,
the insurers must apply the common principles as well as the other relevant legislation in order to
establish the committed fraud. Furthermore, the Fraud Act of 2006, specifies the various acts
which constitute the fraud for which the person can be made guilty of a criminal offense which
are as follows -
 knowingly making a false representation,
 nondisclosure of relevant facts for which one has a duty to bring out,
 dishonestly insult their perspective.
Similarly, for the given facts the exaggeration of the facts of injuries by the bus driver in order to
claim more premium is considered an act of insurance fraud. As a result of the establishment of
the same, the bus driver can be made guilty of a criminal offense as well as the retainment of
premium by the insurer can also be made.
(C) Discuss the legal issues relating to the claim in respect of the child's injuries. Refer to
one case in support of your discussion.
According to (Parson et al, M05 (2021/22) Ch 8 A 4), which is the Road Traffic Act of 1988. It
states that the motor insurance policies often deal with the claimants, other than that of the
policyholders, for instance, the named drivers or any other such person who makes use of the
insured vehicles while having the consent of the concerned policyholder. Moreover, section
148(7) of the Act also specifies that the person who issues the policy of insurance as per section
145, stands liable for the measure of indemnifying the individual or classes of individuals as
specified in the policy. Similarly, with regard to the claim by the child for his injuries in the
given question, he is entitled to claim the benefit out of the insured amount reason being the
injuries resulted to him were the direct cause of the accident.