WORKINGTON HARBOUR AND DOCK BOARD v. TRADE INDEMNITY COMPANY, LTD.

(1934) 49 Ll L Rep 430

COURT OF APPEAL.

Before Lord Justice Scrutton, Lord Justice Greer and Lord Justice Maugham.

Contract - Guarantee - Construction of works by K & R on plaintiffs' dock premises at Workington-Terms of contract that contractor must make his own independent inquiries as to the site and the water therein, and that the plaintiffs would not be bound by any representation that their engineers or their employees or the plaintiffs' employees might make to the contractors, unless in writing by the clerk to the plaintiffs - Tender by K & R -K & R notified that tender would be accepted if they provided guarantee-Surety bond entered into by defendants guaranteeing K & R's performance of contract-Failure of K & R to complete contract-Work completed by plaintiff's-Claim under bond-Defence that bond was void on ground that there was misrepresentation by the plaintiffs as to water in the site and non-disclosure of facts leading up to the acceptance by the plaintiffs of K & R's tender-Plaintiffs' duty of disclosure-Whether contract bond one of guarantee or insurance-Distinction between contracts of guarantee and of insurance -Indebtedness of K & R to plaintiffs denoted by final certificate issued by plaintiffs' engineers - Whether certificate binding on defendants- Plea that certificate was invalid in that it took into consideration advances made by the plaintiffs to K & R to enable them to carry on the contract work.