248 ESSAY ON PROBABILITIES. 



been made, and one of the parties shall have stood his 

 risk, which turns out in his favour, the other party 

 shall receive an ex post facto release from the condi- 

 tions of his bargain, because circumstances afterwards 

 arise, which, had they existed* at the time of making 

 the bargain, would have made it illegal. The several 

 principles on which the decision was founded, well 

 carried out, as they say in parliament, would require 

 that the previous contracts of a man who becomes 

 insane should be null and void ; that the meat which 

 a man buys for his dinner should be returnable to the 

 butcher under the costt, if a friend should invite him 

 in the mean time ; and, in the case before us, supposing 

 that C should have outlived the term, and his debt 

 were paid, as before, then B might have brought his 

 action against the office, for the return of the premiums ; 

 alleging that, as it turned out, the office would have been 

 indemnified, and, therefore, should be considered as 

 having run no risk. 



But, said the judge, the damage was " wholly " 

 obviated and prevented by the payment of the debt. 

 To try this point, let us make a debtor and creditor 

 account of the whole transaction. The following is 

 the way in which it will stand. 



Cr. Dr. 



500 worth of goods fur- ^500 paid by C's executors, 

 nished to C. 



Certain small premiums Those same premiums re- 

 paid to an insurance office, turned by the office, instead 

 with imminent risk of their of ^500. 

 entire loss; such premiums, 

 multiplied by the risk of loss, 

 as in chapter V. , being good 

 legal consideration for a re- 

 mote chance of gaining 500, 

 and so considered by both 

 parties. 



* This is admitting more than is absolutely necessary ; for, unless there 

 were mathematical certainty that a third party would step in and pay C's 

 debts, it is difficult to see how B's insurable interest would cease. 



f The sum paid into court by the insurance office, was less than the 

 amount of the premiums,: but the plaintiffs waived that point. 



