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Lloyd's Maritime and Commercial Law Quarterly

ILLEGALITY OF CONTRACT, INSURANCE OF GOODS

Euro-Diam Ltd. v. Bathurst
In Euro-Diam Ltd. v. Bathurst, A sent diamonds to B in West Germany for sale or return. At B’s request, A supplied an invoice, which understated the price of the diamonds, to assist B to deceive the German Customs. B did not buy the diamonds, which were stolen from B’s warehouse. A claimed their value from his insurer, who resisted the claim on the ground that the insurance was illegal and unenforceable.

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