ABSTRACT
The use of the term ‘condition’ has led to confusion, simply because it has different meanings both in general contract law and insurance law and it is not clear in which sense it has been used in this sub-section. It is clear, after the judgment of Lord Goff in The Good Luck, that this term has been used in the contingent sense because the liability of the insurer has been made subject to the compliance with the warranty by the assured.61 If a reform in this area is going to be carried out, the complex wording of this sub-section should be simplified in order to reflect the judgment of Lord Goff and avoid further disputes regarding the nature of warranties. It is suggested that this part of s 33 should be amended in the following way:
A warranty, as above defined, is a condition precedent to the attachment of risk or to further liability of the insurer ...
