Ingram-Johnson v. Century Insurance Co., Ltd [1909] ScotLR 746 (28 May 1909)

Ingram-Johnson v. Century Insurance Co., Ltd [1909] ScotLR 746 (28 May 1909)

The pursuer's letter of 12 December 1906 constituted an acceptance of the insurer's standing offer to surrender the policy for a cash payment, thereby forming a concluded contract. The absence of completed formalities (endorsement, payment) did not prevent the contract from being binding. After acceptance, the only liability of the insurer was to pay the surrender value, and the policyholder could not withdraw from the bargain.

Citation
[1909] ScotLR 746
Parties
Pursuer/respondent: Dr Ingram-Johnson; Defender/reclaimer: Century Insurance Company, Limited
Jurisdiction
Scotland
Judgment Date
28 May 1909
Procedural Posture
Insurance Contract Dispute / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division
Outcome
Appeal allowed; Lord Ordinary's interlocutor recalled; defenders assoilzied (absolved from liability).
Legal Topics
Policy Surrender, Offer and Acceptance, Concluded Contract, Locus Poenitentiae
Insurance Law Contract Law Policy Surrender Offer and Acceptance Concluded Contract Locus Poenitentiae

Case Brief

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Parties

Dr Ingram-Johnson

Pursuer/respondent

Century Insurance Company, Limited

Defender/reclaimer

Procedural Posture

Insurance Contract Dispute / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Whether the pursuer's letter of 12 December 1906 constituted a binding acceptance of a standing offer to surrender the policy for cash value, thus extinguishing further rights under the policy.
  2. 2 Whether the absence of formalities (endorsement, payment) prevented the contract of surrender from being concluded.

Ratio Decidendi

The pursuer's letter of 12 December 1906 constituted an acceptance of the insurer's standing offer to surrender the policy for a cash payment, thereby forming a concluded contract. The absence of completed formalities (endorsement, payment) did not prevent the contract from being binding. After acceptance, the only liability of the insurer was to pay the surrender value, and the policyholder could not withdraw from the bargain.

Court Disposition

Appeal allowed; Lord Ordinary's interlocutor recalled; defenders assoilzied (absolved from liability).

Orders

  • Lord Ordinary's decision recalled.
  • Defenders assoilzied (absolved from liability).