8. Duty Not To Erect Fixtures
The lessee must not, without the lessors consent erect any permanent structures on
the property. However, structures erected for agricultural purposes are permissible
9. Duty To Put The Landlord In Possession
It is the lessee
It means that after indemnity the insurer becomes entitled to all the legal and equitable rights
respect the subject matter previously exercisable by the insured.
Subrogation facilitates indemnity by ensuring that the insured does not benefit from the con
The examiner when testing this chapter tests the students understanding on rights and duties of
the different instrument holders. A clear understanding of the various parties and their respective
rights and duties is important. This chapter has appeared i
day and a full day is a period of 24 consecutive hours from midnight.
11.6 TERMINATION OF INSURANCE CONTRACT
Indemnityor the sum assured in the event of tota
ELEMENTS OR ESSENTIALS OF THE DEFINITION
1. It is an unconditional written order i.e. Not a request.
2. Addressed by person to another
3. It must be signed by the person giving it
4. It demands payment of a sum certain in money.
5. The sum must be paid on
Insurance can only be effected where loss is accidental in nature or is a consequence of a
negligent act or omission. Loss occasioned by intentional acts does not qualify for indemnity or
for payment of the sum assured. It
Insurance: a contract whereby a person undertakes to pay a premium so as to be paid a sum of
money upon the occurrence of the event insured against.
Insured: the person who takes out a cover and promises to pay a money consideration.
Insurer: the party th
insurers and loss occurs, the twin principles of contribution and appointment apply: -a) If the insured
claims from all the companies at the same time, they apportion the loss
between themselves on the basis of the sums insured. Each insurer bears part of
The insurance contract is aleatory, contingent or speculative as it deals with uncertain future
events. For an event to be Insurable it must be characterized by some uncertainty. In the words of
Channel J in Prudential Assurance Co. Ltd v. Inland Revenue
6. The party liable on a negotiable instrument needs to be notified before it is negotiated.
Examples Include: Cheques, bills of exchange, promissory notes, share warrants, dividend
warrants, bearer debentures etc.
12.2 BILL OF EXCHANGE
observe that the duty is not absolute.
12.1 NEGOTIABLE INSTRUMENTS
This is a document which represents money and the title in passes to a bona fidetransferee free
from only defect. It is a chosein action. Negotiable instru
It is suggested that a contract of insurance is any contract whereby one party assures the risk
of an uncertain event which is not within his control happening at a future time, in which event
the other party has an interest and under which contract the f
In the words of Brett L.J in Castellain v. Preston,
The insured is to be fully indemnified but is never to be more than fully identified.
The principle of indemnity ensures that it is the duty of the insurer to ascertain whether there are
Cover notes generally last for 30 days.
ACCEPTANCE OF THE PROPOSAL FORM
The insurer is not bound to accept the proposers offer, however, if the accepted, it signifies a
contractual relationship between the two. The insurer may signify acceptance of the pr
b. Where the banker has the customer convent to disclose
c. Where disclosure is necessary in the public interest
d. What it is necessary to protect the banker
The banker must not pay any
monies out of the
of Property Act (ITPA),a tenancy exceeding 1year must be registered. Under the Registered
Land Act, a tenancy exceeding 3years must be registered. An unregistered lease will only bind
the parties to it. It is VOID as against 3
THE LAW OF PROPE
by the borrower. This right is exercisable if:-a) There is no contrary provision in the mortgaged
b) Borrowers signature has been attested to by an advocate
c) Notice to pay the amount has been served upon the borrower who has not
1. He is bound to deliver the goods to the bailee for purposes of the transaction
2. He must disclose any defects in the goods or in the title
3. He is bound to indemnify the bailee for loss or liability arising by reason of defects in the
goods or of tit
dividend warrants, bearer debentures etc.
A bill of exchange as an unconditional order in writing by one person to another, signed by the
person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed
or determinable future
As a general rule, the lessee must not transfer, sublease or charge the premises without
the lessors written permission.
5. Duty To Permit Landlord To View The Premises
It is the duty of the lessee to enable the landlord appreciate the condition of the le
h) If trade custom or usage permits, presentation may be effected by post.
If on presentation, the amount is paid by or on behalf of the acceptor, the bill is discharged.
However, presentation for payment maybe dispensed with if it is impossible to secure
by his option. If the insurer opts to re-instate, the subject matter must be re-instated to the
satisfaction of the insured.
Any loss or liability arising in the course of re-instatement is borne by the insurer. The economic
effect of re-instatement is to
6. None of the policies must have exempted itself from contribution.
The twin principles of contribution and apportionment facilitate indemnity.
This is the surrender by the insured of the remains of the subject matter for full indemnity. I
1. INSURABLE INTEREST
This is the financial or monetary interest at stake or in danger if the subject matter is not insured.
It is the interest a person has in the subject matter which he stands to lose in the event of its loss
Need:Under Section 15 of the Act, a referee in case of
need is a
person whose name is inserted in a bill by the drawer or endorsed to whom the payee
may resort to in the event of its dishonour by non-acceptance or non-payment.
as a measure of risk. The higher the probability of loss the greater the risk as the greater the
possibility of loss the greater the probability of a deviation from what is hoped for.
Risk differs from peril and hazards. A peril is the caus
ii) To have the bill noted and or protested
PRESENTATION OF A BILL FOR PAYMENT
On maturity of a bill, it must be presented to the acceptor for payment. Its presentation is governed
by the following rules: -a) If payable on demand, it must be presented wit
formal offer by the proposer. The insurer is not bound to accept the offer. However, he may as
he assesses the risk, extend temporal cover to the proposer.
This is the name given to the temporal cover extended to the proposer by the insurer in
RULES RELATING TO REPRESENTATION OF BILLS FOR
1. The bill maybe presented by the drawee or his agent-2. It must be presented at a reasonable hour on
a business day.
3. It must be presented to the drawee and if dead, to his personal r
bills:Under section 31 (1) of the Act, a bill is negotiated when it is transferred
from one person to another in such a manner as to constitute the transferee as the holder thereof.
A bill may be negotiable in 2 ways namely: