Page 98 - IC38 GENERAL INSURANCE

 A contract is an agreement between parties, enforceable at law.

 The elements of a valid contract include:

i. Offer and acceptance
ii. Consideration,
iii. Consensus ad-idem,
iv. Free consent
v. Capacity of the parties and
vi. Legality of the object

 The special features of insurance contracts include:

i. Uberrima fides,
ii. Insurable interest,
iii. Proximate cause

Key Terms

1. Offer and acceptance
n

2. Lawful consideration
3. Consensus ad idem
4. Uberrima fides
5. Material facts
6. Insurable interest
7. Proximate cause

Answers to Test Yourself
Answer 1
The correct option is II.

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