ABSTRACT

It is fair to say that the older cases were far from adequate in describing the concept of inherent vice. Sassoon and Gaunt case, the concept of inherent vice was discussed as the sole cause of the loss without the intervention of any external events or the cause resulting from a specific peril. The case of Feuiltault Solution Systems reversed the Supreme Court decision of The Cendor MOPU, and inadequate packing was accepted as a form of inherent vice and used as an exclusion to, rather than a description of, the circumstances when there are no 'perils of the sea'. After The Cendor MOPU it is a settled principle that, as long as the assured proves some external perils, there is no possibility for the inherent vice defence to succeed; the Supreme Court explained this definition as being all about the purpose of an all-risk policy.