Contract Law Flashcards
What is an insurance contract?
An agreement enforceable by law between the insurer and the insured.
What are the 2 ingredients of a valid contract?
- Offer and acceptance (undconditional)
- Consideration
Offer and acceptance
A contract comes into existence when a person makes an offer and the other accepts it unconditionally. If new terms/conditions are introduced this is classed as a counter offer and counts as a rejection of the original offer.
- Unconditional = person accepts without altering terms
- Conditional = person introduces new terms (counter offer)
What did the case of Hyde V Wrench state?
A counter offer operates as a rejection of the original offer.
Farming case where Wrench tried to sell his farm.
When is a contract generally formed?
Contract is made when the acceptance is recieved by the person making the offer.
When is a contract formed via post?
Contract is made when the letter is posted, even if the letter is delayed or lost in the post and never reaches recipient.
What did the case of Household Fire Insurance Co V Grant state?
Contract is made when letter is posted, even if the letter is delayed or lost in the post and never reaches recipient.
What case defines consideration in insurance contracts?
Currie V Misa
What is a consideration?
Each persons side of the bargain - what they bring to the table (i.e. money) but can be non-financial too.
