LML4805 ASSIGNMENT 1 2024 S2 ANSWERS
Submission date: before 23:00 on 16/08/2024 (No extensions)
, 1|Page
Assessment 1 Question
Briefly explain the differences between a representation and a warranty; between an
affirmative warranty and a promissory (continuing) warranty; between a warranty of
fact and a warranty of knowledge; and between a warranty of fact and a warranty of
opinion.
Give examples,insurance case laws ,acts in south Africa to illustrate the differences
for all four comparisons. (10)
Differences Between Representations and Warranties, and Various Types of
Warranties
In South African insurance law, the concepts of representations and warranties, as
well as their various types, are crucial for determining the rights and obligations of
both insurers and insured parties. Here’s an expanded explanation of these terms,
along with examples and references from case law and statutes.
1. Representation vs. Warranty
Representation
Definition
A representation is a statement or assertion made by the insured to influence
the insurer’s decision to enter into the insurance contract. Representations
are typically factual in nature and are intended to reflect the situation as it is
known at the time the statement is made. If a representation is proven to be
false, it can affect the validity of the insurance policy or the insurer’s liability.
Example
For instance, if an applicant for home insurance claims that their property is
equipped with a state-of-the-art security system, but this is not true, the
Submission date: before 23:00 on 16/08/2024 (No extensions)
, 1|Page
Assessment 1 Question
Briefly explain the differences between a representation and a warranty; between an
affirmative warranty and a promissory (continuing) warranty; between a warranty of
fact and a warranty of knowledge; and between a warranty of fact and a warranty of
opinion.
Give examples,insurance case laws ,acts in south Africa to illustrate the differences
for all four comparisons. (10)
Differences Between Representations and Warranties, and Various Types of
Warranties
In South African insurance law, the concepts of representations and warranties, as
well as their various types, are crucial for determining the rights and obligations of
both insurers and insured parties. Here’s an expanded explanation of these terms,
along with examples and references from case law and statutes.
1. Representation vs. Warranty
Representation
Definition
A representation is a statement or assertion made by the insured to influence
the insurer’s decision to enter into the insurance contract. Representations
are typically factual in nature and are intended to reflect the situation as it is
known at the time the statement is made. If a representation is proven to be
false, it can affect the validity of the insurance policy or the insurer’s liability.
Example
For instance, if an applicant for home insurance claims that their property is
equipped with a state-of-the-art security system, but this is not true, the
