Contract Law Terms Flashcards
Consideration
To an exchange of value. Binding force in any contract.
Fraud
Falsification. To misrepresent.
Falsehood
The state of being untrue.
Insurance policy
A contract between policyowner an insurance company wich agrees to
pay the insured or beneficiary for loss caused by specific event
Insured
Covered by insurance
Insurer
Insurance company
Beneficiary
Is the individual or individuals who the policyowner has named to receive benefits of the policy.
Contracts
Are written agreements that are legally enforceable by law.
Abide
To support,stand,or stick out.
Tort
An injury or wrong.
Is a private,civil,non contractual wrong for which a remedy throug a legal action may be sought.
Deliberate
Careful,cautious.
Sought
Try to obtain.
To go in search of.
Breach
Fail to comply with
Infraction or violation of a law, obligation,tie, or standard
Break / Violate
Negligence
Carelessness
Intentional tort
Any deliberate act that causes harm to another person regardless of wetherthe offending party intended to injured the agreeved party.
Unintentional tort
The result of acting with out proper care.
This is generally referred to as negligence.
Insurer’s consideration
Is the promiseto pay for losses.
Insured’s consideration
Is the premium and statements on the application.
Competent
Meeting certain minimum requirements of age,soundness of mind, or the like.
Competent Parties
Must be capable of entering to a contract in the eyes of the law.
Generally this requires that both parties be of legal age,mentally competent to understand the contract, and not under the influence of drugs or alcohol.
Legal Purpose
The purpose of the contract must be legal and can not go agents public policy.
