The Life Insurance Co of Australia v Phillips
(1925) 36 CLR 60
Phillips entered into two life insurance agreements. Each agreement provided that the company would make payments on the death of Phillips or on a specified date (whichever occurred first) in exchange for the payment of premiums. The contracts also provided that Phillips would be entitled to a housing loan after three years. Did this requirement render the contracts unenforceable for uncertainty?
No. The entitlement to a housing loan was too vague to be enforced - however, this could be severed from the remainder of the contract and there was no ambiguity in relation to the insurance cover and premiums.