4.3 Voidable or Discharged Contracts

The voidability's grounds (the contract's valid-but-avoidable state): (i) the utmost-good- faith breach (the non-disclosure-and-misrepresentation — the material fact's concealment: the classic ground — the insurer's avoidance option); (ii) the fraud (the claim's fabrication — the invented loss); (iii) the misdescription (the subject's error — the innocent-and-material faces). The discharge's grounds (the valid contract's ending): (i) the breach of condition (the policy- conditions' violation — the safety-requirements' neglect; the increased-risk's unauthorised changes); (ii) the warranty's breach (the promised state's failure — the strict-compliance faces); (iii) the premium's non-payment (the consideration's failure — the lapse: Unit 5's craft); (iv) the risk's cessation (the subject's permanent-end — the insured's death-outside-cover; the property's disposal); (v) the frustration-type faces (the impossibility's events). The distinction's craft (the exam's classic): the VOIDABLE = the insurer's OPTION (the affirmation's possibility — the ratification's choice); the DISCHARGED = the contract's ENDING (the future-release only — the accrued-liability's survival); the consequences' difference (the avoided contract's retrospective-collapse vs the discharged contract's prospective-end).