Case 3 ABC Corporation was awarded a project to create a water supply for the town of Olds. The project involved the construction of water intake line under a portion of the riverbed. During the design of the project, they foresaw that a risk of damage from flood is real. And that is why and before the start of the project, they secure an insurance coverage for those risks. The corporation communicated to the agency, Insurance Broker, in a clear and no uncertain terms, the risks that they wanted to be covered namely the potential damage to the materials, equipment, and construction site itself. The company was satisfied with the outcome of the conversation with the agent as the agent said that the coverage of the risks will be arranged, and the insurance policy will be delivered in due time. Immediately, the agent contacted the insurance company and purchase a policy that exclude the coverage, as requested, in the event of flood. When the river was flooded, it destroyed and damaged some of the construction materials, equipment, and its site. Worse, the company learned that the insurance policy does not cover those risks that were directed as per instruction.  Who is liable for the cost of damage, the agency, or the insurance company? Please state your reasons.   Case 4 Jason, who has graduated from automotive program, and Gerry who is a businessman and entrepreneur entered into a partnership business of auto repair shop. In their partnership agreement, Gerry will provide on the financing and administration while Jason will act as active partner and in-charge of running the operations of the business. The agreement also stipulates that the firm should not engage in the buying and selling of vehicles. Due to financial needs, Jason sold a vehicle who belongs to a customer who had left it with the firm for repair and without the knowledge of the owner. Later, the car was recovered by the owner from Jack, who is the innocent buyer. Jack sued Jason for breach of implied condition under the contract of sale that the seller has clean title of the goods.  Is Gerry liable of Jason’s misdeeds? Please state your reasons.

Case 3 ABC Corporation was awarded a project to create a water supply for the town of Olds. The project involved the construction of water intake line under a portion of the riverbed. During the design of the project, they foresaw that a risk of damage from flood is real. And that is why and before the start of the project, they secure an insurance coverage for those risks. The corporation communicated to the agency, Insurance Broker, in a clear and no uncertain terms, the risks that they wanted to be covered namely the potential damage to the materials, equipment, and construction site itself. The company was satisfied with the outcome of the conversation with the agent as the agent said that the coverage of the risks will be arranged, and the insurance policy will be delivered in due time. Immediately, the agent contacted the insurance company and purchase a policy that exclude the coverage, as requested, in the event of flood. When the river was flooded, it destroyed and damaged some of the construction materials, equipment, and its site. Worse, the company learned that the insurance policy does not cover those risks that were directed as per instruction.

 Who is liable for the cost of damage, the agency, or the insurance company? Please state your reasons.

Case 4 Jason, who has graduated from automotive program, and Gerry who is a businessman and entrepreneur entered into a partnership business of auto repair shop. In their partnership agreement, Gerry will provide on the financing and administration while Jason will act as active partner and in-charge of running the operations of the business. The agreement also stipulates that the firm should not engage in the buying and selling of vehicles. Due to financial needs, Jason sold a vehicle who belongs to a customer who had left it with the firm for repair and without the knowledge of the owner. Later, the car was recovered by the owner from Jack, who is the innocent buyer. Jack sued Jason for breach of implied condition under the contract of sale that the seller has clean title of the goods.

 Is Gerry liable of Jason’s misdeeds? Please state your reasons.