Study 5 Flashcards
Void contract
An illegal contract
Consideration
The value received to bind a contract. It is an essential part of a binding contract. Consideration is either expressed or implied. The money, or whatever is being used in substitution of money, paid for the article or contract is “the consideration”
Capacity to contract
Parties must be legally able to enter into contracts. This means that the person must be able to enter into a legal agreement and perform some act. The person must be of sound mind.
Tutor (or curator)
Person who is the legal guardian of another person
Lesion
Occurs when the minor cannot financially afford the object of the contract even though the price is fair, or when the minor can afford it but the object is overvalued, or when the minor cannot afford an overvalued object. The challenge can only be raised by the minor; it is binding on the other party, who cannot cancel at his or her own discretion. There are some instances where the minor cannot use this defence.
Bailee
In contract and property law, one to whom goods or property are entrusted for a stated purpose. Can either be gratuitous (for no consideration) of for hire (for consideration)
Deductible
An agreed specific amount that the insured must pay on a claim before the insurance company will cover the rest of the claim
Coinsurance clause
A distinct section or provision in an insurance policy that requires an insured (property owner) to carry separate insurance for a specified amount stated in the policy to be eligible for full coverage. If there is insufficient coverage, the insured must pay part of the loss
Actual cash value (ACV)
The fair market value of the property, taking into account factors that might augment or reduce the value of the property in question
Replacement value
The current market value of the cost to replace the lost or damaged insured property
