Commercial Law Custom Essay

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Part B: A proposal for a partnership professional indemnity policy asked the following question: “Are any of the partners, after enquiry, aware of any circumstances that are likely to give rise to a claim against the Firm or their predecessor in business or any of the present and former partners? If so, please provide full particulars.” At the foot of the proposal was the following declaration: “I/We hereby declare that the above statements and particulars are true and that I/We have not suppressed any material facts and I/We agree that this Proposal Form shall be the basis of the contract with the Underwriters.” One of the partners was aware of a possible claim against the firm but the signing partner innocently and in ignorance answered “No”. If such a claim is made, can the insurer deny liability on the basis of misrepresentation and non-disclosure? (20 marks)

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