As provided in section 39, of the Specific Relief Act, A the owner of a ship by fraudulently representing her to be seaworthy induces B an underwriter, to insure her ?

Correct answer: D. B may obtain the cancellation of the policy

  • A. A may obtain the cancellation of the policy
  • B. Non of These
  • C. None of the above may obtain the cancellation of the policy
  • D. B may obtain the cancellation of the policy

Explanation

The insurer, B, was induced by A’s fraudulent misrepresentation, so B may seek cancellation of the policy under section 39. The fraudster cannot use his own fraud as the basis for cancellation.

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