Policy Provisions and Contract Law Flashcards
1
Q
Elements of a Contract
A
In order for contracts to be legally binding, they must include:
1. Agreement - offer and acceptance
2. Consideration
3. Competent parties
4. Legal purpose
2
Q
Consideration
A
Something of value that each party gives to the other. (Payment of premium and the representations made in the applications / promise to pay in the event of loss)
