9 Questions
Match the following elements with their descriptions in the context of an insurance contract:
Offer and Acceptance = An offering being made and then being accepted by the other party Consideration = A fair exchange of value Legal Capacity = Everyone that is a party to the contract must have the legal capacity or competence to enter into a contract Legal Purpose = The courts will not enforce a contract that is not legal
Match the following terms with their definitions in the context of a contract:
Agreement = Also often called 'meeting of the minds', it signifies that all negotiations have been settled and an agreement has been reached Premiums = Payments made to the insurance company in exchange for a promise to pay claims in the future Age of majority = A requirement to be met for a person to have the legal capacity to enter into a contract Illegal services = A contract for the provision of these would not be a legal and valid contract
Match the following terms with their definitions:
Application to the insurance company = An act that is part of the 'Offer and Acceptance' process in insurance contracts Promise to pay claims in the future = What the insurance company provides in exchange for premiums Mental capacity to understand what you are signing and agreeing to = A requirement to be met for a person to have the 'Legal Capacity' to enter into a contract Contract for the provision of illegal services = An example of a contract that does not meet the 'Legal Purpose' requirement
Which of the following is NOT an essential element required for a legally binding contract?
Legal Purpose
What does the element of 'Consideration' refer to in a contract?
A fair exchange of value
What is the special element required by insurance contracts in addition to the essential elements of a legally binding contract?
Offer and Acceptance
Which of the following is NOT an essential element required for a legally binding contract?
Legal Purpose
What does the element of 'Consideration' refer to in a contract?
The fair exchange of value
What is the special element required by insurance contracts in addition to the essential elements of a legally binding contract?
Consideration
Test your knowledge of the essential elements of an insurance contract with this quiz. Learn about the special elements required for insurance contracts and understand what makes a contract legally binding. Test your understanding of offer and acceptance, consideration, legal capacity, and more.
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