Page 14 - Life Assurance
P. 14
/1 Preface:
The insurance contract is an agreement
embodying a set of promises. These promises
must have been made under certain conditions
before law can enforce them.
In general, there are four such conditions, or
requirements, which may be stated as follows:
1- Legality: the agreement must be for a
legal purpose. It must not be against public
policy or be otherwise illegal.
2- Legal capacity: the parties must have
legal capacity to contract.
3- Offer and acceptance: there must be
evidence of agreement of the parties to the
promises. In general this is shown by an offer by
one party and acceptance of that offer by the
other.
4- Considerations: the promises must be
supported by some consideration that may take
the form of money or by some action by the
parties.
78 Life41/life/life 08
The insurance contract is an agreement
embodying a set of promises. These promises
must have been made under certain conditions
before law can enforce them.
In general, there are four such conditions, or
requirements, which may be stated as follows:
1- Legality: the agreement must be for a
legal purpose. It must not be against public
policy or be otherwise illegal.
2- Legal capacity: the parties must have
legal capacity to contract.
3- Offer and acceptance: there must be
evidence of agreement of the parties to the
promises. In general this is shown by an offer by
one party and acceptance of that offer by the
other.
4- Considerations: the promises must be
supported by some consideration that may take
the form of money or by some action by the
parties.
78 Life41/life/life 08
