n Tydskrif vir die Suid-Afrikaanse Reg - When is a contract one of insurance? Or, is an insurance contract without a premium possible? : regspraak
|Article Title||When is a contract one of insurance? Or, is an insurance contract without a premium possible? : regspraak|
|© Publisher:||Juta Law Publishing|
|Journal||Tydskrif vir die Suid-Afrikaanse Reg|
|Publication Date||Jan 2005|
|Pages||619 - 624|
ISI Social Science
Say a bond agreement provides that "[the mortgagor] hereby declares that the advantages of life insurance that in terms of this loan covers the amount owed, have been fully explained to [him], and that [he has] chosen to accept this cover". Does such a provision make the lender (mortgagee) the life insurer of the borrower (mortgagor)? Secondly, and let us assume for the moment that such a provision does indeed constitute a life insurance contract between the mortgagor and the mortgagee, what happens if they fail to agree on a premium payable in terms of the contract? These were the crisp questions in Absa Bank Ltd v Swanepoel NO 2004 6 SA 178 (SCA).
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