Difference Between Representation and Warranties
Difference Between Representation and Warranties
Representation Warranties
In Century Spinning & Manufacturing Co. In All India General Insurance Co. v. S.P.
Ltd. v. Ulhasnagar Municipal Council 1970 Maheshwari AIR 1963 Ori 217) it was held
SCR (2) 854 it was held that: that:
A representation that something will be done in Representations which are made on the basis of
the future may result in a contract (unless the a contract or on the terms of a contract are
law requires it) if the person to whom it is warranties.
addressed acts on the basis of such
representation.
In a case of Governor of Orissa State v. In case of All India General Insurance Co.
Shivaprasad Sahu (S.A No.4 of 1961) (AIR 1960 Mad 484)
the court observed “that innocent It was observed that in case of warranty,
misrepresentation does not cause avoiding a materiality or immateriality of the fact
contract unless the representation is made warranted signifies nothing. Its incorrectness
without reasonable ground” constitutes a defence o an action on the policy,
even though it be not material and be made in
perfect good faith.
In case of All India General Insurance Co. In case of Rogers v. Toni Home Permanent
[ AIR (1960 Mad 484)] Co. [ 147 N.E 2d 612,616 (Ohio 1958)]
The Court observed that in case of It was held that a warranty may be either
representation, the insurer can avoid the policy express, where there is a positive
only by proving that the statement is false and representation of fact that induces a
fraudulent or that it was false and material to prospective purchaser to buy, or implied ,
the risk. where, considering the relations between the
parties, the nature of the transaction and the
surrounding circumstances, a warranty is