Home | Cases | The Life Insurance Co of Australia v Phillips

 

Key information

Court
High Court of Australia

Issues
Agreement
Certainty

Full case
AustLII

AustraliaThe Life Insurance Co of Australia v Phillips

(1925) 36 CLR 60


Facts

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?

 

Held

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.

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