Formation of an Insurance Contract

Question 1

What are the essential five factors to form a valid contract?

Answer 1

OFFER AND ACCEPTANCE 
INTENTION TO CREATE A LEGAL RELATIONSHIP
CONSIDERATION
CAPACITY TO CONTRACT
LEGAL FORM

Question 2

Explain the concept of “Offer and Acceptance”.

Answer 2

An offer may be made in writing, orally, or by conduct to an individual, a group, or to the public as a whole.

A contract will come into existence when the offer is accepted after terms are agreed.