3 - Contract & Agency Flashcards
(31) What element of an insurance contract is likely to be affected by purchasing insurance direct from a UK insurer?
iF1 2023 Exam
A. The amount of Insurance Premium Tax payable
B. The complaints process
C. The premium payable
D. The protection should the insurer fail
A valid contract must include:
Self test questions
a. Signed documentation
b. A written offer
c. A legal disclaimer
d. Consideration
Sanjeev requires house insurance. He has spoken to an insurer over the telephone who has offered him a policy with an excess of £500. Sanjeev accepts the policy but requests an excess of £250. In contract terms, Sanjeev’s acceptance represents:
Self test questions
a. A counter-offer
b. An offer
c. Unconditional acceptance
d. Agreement
Katie is selling her car for £2,000. May offers her £1,800, which Katie refuses. Legally, a contract has not been formed between Katie and May because:
Self test questions
a. Katie’s refusal of the counter-offer acts as a withdrawal of the original offer
b. Katie and May did not sign a contract
c. May’s counter-offer acts as a rejection of the original offer
d. May offered less than Katie was prepared to accept
(33) What is meant by consideration in the context of a valid contract between two parties?
iF1 2023 Exam
A. Each party’s duty to act fairly towards the other.
B. Each party’s duty to act with good faith.
C. Each party’s legal capacity to enter into the contract.
D. Each party’s side of the bargain which supports the contract.
(34) Corrine offers to supply filing cabinets to Debra, who accepts the offer. What further action is required in order that a legally enforceable contract exists between them?
iF1 2023 Exam
A. Another person needs to witness the agreement
B. Debra needs to agree to pay Corrine for the filing cabinets
C. The filing cabinets need to be delivered to Debra
D. The terms of the agreement need to be written down
