Contracts Questions

Question 1

To prevent people from taking advantage of minors or the insane, a contract must have which element?

Answer 1

Competent parties

Question 2

The element of an insurance policy that establishes that each party to the contract is giving something of value is known as

Answer 2

Consideration

Question 3

Statements in the application for insurance that must be true to the best of the applicants knowledge are called

Answer 3

Representations

Question 4

An applicant failed to disclose a material fact on an application. The applicant is guilty of

Answer 4

Concealment

Question 5

To restore an insured to the same financial position after a loss as existed before without profiting from the loss is known as

Answer 5

Indemnity