Asked by Alice Young on May 04, 2024
Verified
Because an insurance contract is governed by the principles of contract law, for the contract to be binding, consideration must be given.
Contract Law
A branch of law that deals with agreements between parties, their rights, and obligations.
Consideration
In contract law, consideration refers to something of value exchanged between parties that is necessary for a valid contract.
Binding Contract
A legal agreement between two or more parties that is enforceable by law.
- Explore the essential features of insurance contracts, including the criteria for insurability, the role of insurable interest, and the legal enforceability of these contracts.
- Understand the statutory requirements affecting insurance contracts and statutory interpretations.
Verified Answer
IL
Isabel LopezMay 11, 2024
Final Answer :
True
Explanation :
In contract law, including insurance contracts, consideration refers to the exchange of value between parties, which is a necessary element for the contract to be legally binding. In insurance, the premium paid by the insured and the promise to indemnify by the insurer serve as consideration.
Learning Objectives
- Explore the essential features of insurance contracts, including the criteria for insurability, the role of insurable interest, and the legal enforceability of these contracts.
- Understand the statutory requirements affecting insurance contracts and statutory interpretations.