Commerical law

Please ensure that in completing this task you comply with the instructions in the course description. Read them carefully. In particular ensure that you:

· Acknowledge all information and material you obtain from internet and other sources
· Attach a completed cover page when submitting the assignment
· Answer the questions asked below
· Include a bibliography of sources that you have used.

Jason approaches Allinsurance for insurance over the house he is renting. He will use the house as his home, but for extra income will have a fellow student rent one of the rooms in the house (contrary to the terms of the lease he signed for the house). Jason also plans to make jam to sell at the local market.

b) Assume that Jason fails to mention that he will be renting a room or that he will be making food to sell at a market. The only question Jason saw that might have been relevant was �€�do you intend to use the premises for business purposes?’ Jason answered �€�no’. One day Jason finds that someone has broken down the door to the outside shed in which he has been storing the jam and has caused $4000 damage. Jam worth around $500 in total has also been stolen. Allinsurance is refusing to pay up on either of the claims because Jason hasn’t made full disclosure. Is this correct? Does the company have the right to reject the claim? (Refer to ss 28 and 31 of the Insurance Contracts Act 1984 (Cth)) (12 marks)

c) Assume that Jason also discovers that his tenant has been growing marijuana in his bedroom and water has dripped onto the carpet, causing $5000 of damage. Allinsurance is also refusing to cover this damage on the basis that Jason was responsible for illegal activities being carried out in the house. Is this correct? Does the company have the right to reject the claim?

PS: you don”t need follow the any assignment format, which mean you don”t need to write any introdution for the assignment~ (i will do the question A by myself so you juz need to do the question b and c. thx)
just follow the “IRAC” to explain the case~ (issue, rules, Application, Conclustion) thank you

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