ANGLO-INTERNATIONAL BANK, LTD. v. GENERAL ACCIDENT FIRE & LIFE ASSURANCE CORPORATION, LTD.

(1934) 48 Ll.L.Rep. 151

HOUSE OF LORDS.

Before Lord Tomlin, Lord Warrington of Clyffe, Lord Russell of Killowen, Lord Macmillan and Lord Wright.

Contract - Indemnity - Agreement by plaintiffs to finance M Corporation (now in liquidation) in respect of hirepurchase schemes - Policy issued by defendant insurance company insuring M Corporation against any loss in excess of £250 "arising within any single period covered by the said policy, which may be sustained through the non-payment of the instalments due by the hirers"-Letters of indemnity from defendants (reciting that defendants and the M Corporation had agreed that the benefit of the policy was to pass to plaintiffs) providing that "notwithstanding any of the clauses and conditions recited in such policy in the event of any instalments in excess of a total sum of £250 to the [M Corporation] and only when the losses so incurred have exceeded during any single period covered by the said policy the said sum of £250 under agreements not being met by the hirers and paid to you within 30 days of the due date, we will within seven days of demand by you pay you the amount so dishonoured without bringing into operation any of the clauses and conditions" of the policy-Construction- Ambiguity - Measure of defendants' liability-"Amount so dishonoured"