ROYAL EXCHANGE ASSURANCE vs. TAILOR

The plaintiffs are an insurance company, carrying on business in Ghana. In June 1962 they issued to the defendant, who is a transport owner, a third party policy No. CV 39736 in respect of a number of vehicles. Later, the plaintiffs agreed to extend the said policy to cover an Austin commercial vehicle No. GE 2844, also owned by the defendant. On or about 29 August 1963, by a hire-purchase agreement, the defendant sold the said vehicle No. GE 2844, to one Kwasi Twum. The plaintiffs contending, that the sale was without their knowledge, brought the present action for a declaration that the policy No. CV 39736, so far as the vehicle No. GE 2844 was concerned, became void and of no effect after the said sale. The defendant in his statement of defence admitted that he had sold the vehicle under a hire-purchase agreement as alleged, but he averred that be did so with the consent of the plaintiffs, because the plaintiffs knew all the time that the defendant was running a transport busines...