Legal Affairs

Voetstoots clause does not cover fraudulent misrepresentation

The Supreme Court of Appeal awarded damages to the purchasers of a guesthouse which had a serious leaking roof because the seller failed to disclose the defects he was aware of. The voetstoots clause in the deed of sale was inapplicable because the claim was founded on delictual liability for fraudulent non-disclosure/misrepresentation and not on the implied warranty of a seller that the property is free of latent defects.

Breach of an insurance policy may lead to damages not cancellation

Depending on the wording of an insurance policy, a breach by the insured will not necessarily entitle the insurer to cancel the policy without a specific right to do so. According to the wording or, if not explicitly dealt with, the materiality of the breach, the insurer may only have a damages claim for loss resulting from the breach.

New emerging risk insights

Claims tainted by fraud are wholly recoverable by insurers