The Role of Utmost Good Faith in Insurance Law Case Study

The Role of Utmost Good Faith in Insurance Law - Case Study Example This difference in approaches to contracts in the US and the UK will illustrate how the UK will uphold claims even if questionable on the strict guidelines of the contract and material fact; whereas the US relies more on the concept of good faith and how this applies to the material fact. The basis of Hansen Bancorp Inc et al v US is that the Court of Federal Claims had erred in its judgment and the breach of contract by the US government was total therefore the appellants of the Hanson Company were entitled to restitution on all counts. This decision stems from the question whether there has been a total breach of contract if there has been a total breach of contract restitution is available. The court decided there was a total breach because the US government had come to a contract and Hanson had committed its resources to fulfill its duties; however, the US government had failed to complete its obligations, therefore, fulfilling the criteria of a total breach of contractual obliga tion. This decision is primarily an exercise in the power of the contract and its adherence, which cannot be avoided even if the breaching party is the government. The case of Hansen Bancorp heavily relies on the adherence of the contract and contract law; whereby once the parties started to act on the contract then it is only fair that the other party follows through with their contractual obligations. This case does not fudge along the lines of what may not constitute the total breach of the contract.... judgement and the breach of contract by the US government was total therefore the appellants of the Hanson Company were entitled to restitution on all counts. This decision stems around the question whether there has been a total breach of contract, if there has been a total breach of contract restitution is available; however without total breach this remedy is not available. The court decided there was a total breach because the US government had come to a contract and Hanson had committed its resources by fulfilling its duties; however the US government had failed to complete its obligations therefore fulfilling the criteria of a total breach of contractual obligation. This decision is primarily an exercise in the power of the contract and its adherence, which cannot be avoided even if the breaching party is the government. The case of Hansen Bancorp heavily relies on the adherence of the contract and contract law; whereby once the parties started to act on the contract then it is only fair that the other party follows through with their contractual obligations. This case does not fudge along the lines of what may not constitute total breach of the contract. Rather the courts take a very logical and straightforward approach considering each part of the dealing to ensure that a total breach has occurred. The court identifies that a breach is an act or failure to act that impedes the fulfillment of the contract by one of the parties, where the other party has fulfilled their obligations or all the obligations they are able to prior to action by the other party. This approach ensures that the original contract is the most important factor in determining a breach and if the actions of a party are obviously impeding the contract then there is a breach of contract, i.e.