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the loss. Prudential also made a categorical admission at the time of the procurement of the
insurance contract that the vessel was properly classified by the Bureau Veritas.
Assuming that there was a breach in the policy, the renewal of the insurance policy for two
consecutive years after the loss is deemed as a waiver on the part of Prudential. Breach of a
warranty or of a condition renders the contract defeasible at the option of the insurer; but if he so
elects, he may waive his privilege and power to rescind by the mere expression of an intention so
to do.
2.) the amount granted by Prudential to Trans Asia, evidenced by a document denominated as a
"Loan and Trust Receipt", constitued partial payment on the policy. Under said agreement,
Prudential is obligated to hand over to Trans Asia "whatever recovery the latter may make" and
the latter to deliver to the former "all document necessary to prove its interest in the said
property." Prudential was given the right of subrogation to whatever net recovery Trans Asia may
obtain from third parties resulting from the fire.
PETITION DENIED.