G2: Contract Law (Section I)

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Code & Ethics Flashcards on G2: Contract Law (Section I), created by Det Ferraris on 29/05/2013.
Det Ferraris
Flashcards by Det Ferraris, updated more than 1 year ago
Det Ferraris
Created by Det Ferraris over 11 years ago
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Question Answer
Unilateral Only of the parties to the contract has made an enforceable promise.
Personal Between individual and the insurer.
Imdemnity Policy is designed to restore one back to the previous condition.
Policy Requirements 1. Parties 2. Property/Person Insured 3. Insurable Interest 4. Perils (Risk Insured) 5. Policy Period 6. Premium
Contract Agreement between two or more parties that is enforceable by law; contract law.
C-L-O-C Elements for a valid contract. C= Competent Parties L= Legal Purpose O=Offer & Acceptance C= Consideration.
Competent Parties Element for a Contract. All party must be: 1. Legal Age 2. Mentally Competent 3. Not intoxicated
Legal Purpose Element for a valid contract. Must be for legal purpose and not illegal.
Offer & Acceptance Elements for a valid contract. Parties have met and are in mutual agreement.
Considertion Elements for a valid contract. Something that is done or promised in return for a contractual promised.
Insurance Policy the WRITTEN instrument in which a contract of insurance is set forth.
Aleatory Contract Contract which involves an unequal exchange between parties. Based on an unknown or contingent event. $70 premium for $1Million Death Benefit Death is the contingent event
Adhesion Only one party writes the contract (insurer). If the insured disputes ambiguous language on contract, court sides with the insured.
Conditional Certain conditions must be met by one party before the other party is required to perform their contractual obligations.
Utmost Good Faith Each party should be able to rely on each others statements or representations. HONEST
Contract Law Body of Law that governs contract enforcement. ex: breach of contract Owed to a specific person.
Tort Law Body of law that governs breaches of duties that exist as a matter of law, not arising from a breach of contract. ex: libel, slander Owed to everyone
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