Dodger bought an insurance contract from Liberty Farm Co.The policy contained a clause stating that all claims for losses had to be reported within 45 days after the date of the loss or the claim would be barred.Time is stated to be of the essence.Dodger sustained a covered farm loss,but did not report it to Liberty Farm until 50 days later.Liberty Farm denied coverage for the claim.If Dodger sues,who wins?
A)Dodger wins;the contract was substantially performed.
B)Liberty Farm wins;there was failure of a condition subsequent.
C)Dodger wins;courts will not enforce a time-of-the-essence clause.
D)Liberty Farm wins;the impossibility doctrine applies.

Question

Quizplus · Accepted Answer

The clause in the insurance policy that required all claims to be reported within 45 days was a condition precedent. Dodger's failure to report the claim within the specified time means that there was a failure of a condition subsequent, which bars the claim. The fact that time is stated to be of the essence makes the deadline even more critical, and the courts are likely to enforce such deadlines in insurance contracts. Therefore, Liberty Farm wins, and Dodger's claim is barred.

Dodger Bought an Insurance Contract from Liberty Farm Co