Promises
A statement in a reinsurance contract requiring the cedent to report claims in a timely manner to reinsurer is an example of this.
What is a warranty?
The decision not to enforce a contractual right or term under a contract is called this. For example, a policy requires a policyholder to file a proof of loss to be paid, but Coyote Ins. Co. accepts the claim and partially pays without a proof of loss. The policyholder sues for the partial denial, and Coyote argues the policyholder did not submit a proof of loss. The court rules Coyote did this to its rights when it partially paid the claim.
What is waiver/waived?
From Latin for "make alike," this term means an exact copy, but in the office, it refers to an archaic machine that once trilled and whirled out blurry documents at all hours of the day.
What is Facsimile?
This clause basically says, "If it's not written down in the contract, it doesn't count." So no, that text message doesn't make it official.
What is the entire agreement clause?
This legal protection keeps your secrets safe when you're spilling the "tea" to your lawyer. It covers confidential communication between a lawyer and their client, whether it's verbal, written, emailed, or texted.
What is Attorney-Client Privilege?
These terms are the modern stand-ins for "warranty?"
What are conditions or conditions precedent?
This principle stops someone from changing their story or behavior if it hurts the other party—especially when you have already acted on the original version. The insurer pays a late claim once, then denies a similar late claim later. "You can't switch rules mid-game."
What is estoppel?
This Latin terms means "from the beginning" and it's lawyer-speak for treating a contract as if it never existed at all. For example, Blaise tells his insurer he has a state-of-art sprinkler system, but in reality, it is a garden hose duct-taped to the ceiling. The kitchen goes up in flames during a flaming whiskey pancake experiment, and the insurer voids the policy from day one."
What is Ab Initio?
This legal concept kicks in when a party doesn't act like a "reasonable person," and another party ends up injured.
What is negligence?
Attorney-client privilege belongs to this person, meaning they can waive or invoke it.
Who is the client?
An insurance policy includes a statement stating the policyholder will keep a trained guard dog on duty during off hours at the plant (warranty). The policyholder accidently leaves Oliver, a cantankerous 12-year-old ragdoll cat instead of Bruno, an expertly trained German Shepherd, and the plant is burglarized. Failure to leave Bruno at the plant may be considered this.
What is a breach of warranty?
It is the legal version of "you can't go back on your word," especially when the other party relies on it and gets burned. For example, Coyote Ins. Co. tells a policyholder a late premium payment will not affect coverage during a grace period. The homeowner relies on the statement and pays late. Coyote then tries to deny the claim because payment was late, but the homeowner invokes this doctrine.
What is equitable estoppel?
When a massive, unforeseen event like an earthquake or flood disrupts normal business, this French term can excuse parties from their obligations due to circumstances beyond their control.
What is Force Majeure?
This term gives one party the power to say, "Here's what counts as a single loss"—after the dust has settled.
What is sole judgement?
This is the moment when your confidential communication with your lawyer goes from protected to "uh-oh, subpoena incoming;" because what they asked was on how to stash cash to illegally avoid taxes.
What is committing a crime?
This may happen if you breach a warranty.
What is the contract being voided?
This version of estoppel protects someone who relied on a promise—even if it wasn't in a formal contract—and suffered financial damages. An insurer promises coverage. The insured spends money based on that, and then the insurer backs out. The court says: "Not so fast."
What is promissory estoppel?
This Latin term refers to what happens in reality or in practice, even if it lacks legal authority. For example, a junior adjuster is assigned to assist the senior adjuster, but in fact, she is adjusting all the claims.
What is De Facto?
This legal rule says some contracts need to be in writing and signed because no judge wants to hear you swear that your grandma agreed to give you her house in exchange for you feeding her llamas while she was dirt biking in the desert.
What is the Statute of Frauds?
This doctrine protects materials prepared by attorneys in anticipation of litigation, ensuring their strategies stay private.
What is the Work Product Doctrine?
As a condition precedent to filing a lawsuit, most reinsurance agreements require the parties to engage in this alternate dispute resolution method before going to court.
What is arbitration?
This one stops a party from re-litigating the same issue they already lost in court. No do-overs.
What is collateral estoppel?
This Latin term means "by law" or "by right" and describes a situation that is legally recognized, even if reality is off doing its own thing. For example, Coyote Ins. Co. is ___ authorized to sell policies in all 50 states, but in practice focuses only in coastal areas.
What is De Jure?
This is the person the contract is being enforced against. Translation: the one who's legally stuck with it.
What is the "entity charged therewith?"
This doctrine allows separately represented parties with shared legal interests to exchange information without waiving privilege. It's like a legal group chat, but courts don't always agree on when it applies.
What is the Common Interest Doctrine?