Question 1

A claimant may possibly recover money transferred under an illegal contract when

Options :

A : the illegality makes the contract voidable rather than void.

B : both parties to the contract are equal in wrongdoing.

C : the contract is against public policy but not substantive law.

D : the legal portion of the contract can be severed from the illega portion.

Answer: B

Question 2

For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?

Options :

A : Honest opinion.

B : Privilege.

C : Statutory authority.

D : Necessity.

E : Prescription.

Answer: A,B

Question 3

For this question more than 1 option is correct. You must select all the correct options to gain the mark. A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

Options :

A : Reject the claim, but maintain the policy.

B : Reduce the claim amount in proportion to the premium it would have charged.

C : Apply any terms it would have applied if the misrepresentation had not taken place.

D : Avoid the contract, refuse all claims and keep the premium.

Answer: B,C

Question 4

What is the role of a condition precedent in an insurance policy?

Options :

A : It defines the scope of coverage for the policyholder

B : It is a requirement that must be met before the insurer is liable for a claim

C : It outlines exclusions from coverage

D : It ensures that the insurer will cover all risks associated with a policy

Answer: B

Question 5

Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

Options :

A : The insurer must continue to provide coverage, but with an increased premium

B : The insurer may cancel the contract or refuse to pay a claim

C : The insurer can sue the insured for breach of contract

D : The insurer is obligated to reduce the payout amount based on the breach

Answer: A