Requirements of Contracts
Two or more persons come to a mutual understanding with respect to their rights and duties
What is an agreement?
Persons who claim against a policy but who are not a party to the policy.
Who is a Third Party?
The fair market value of property, taking into account factors that might augment or reduce teh value of the property in question.
What is Actual Cash Value (ACV)?
A fact that would affect a contract of insurance enough to influence an insurer's decision regarding whether to accept or reject the risk or the premium to be set.
What is a material fact?
An illegal contract. In the law, a contract that was never made or never existed.
What is a void contract?
What is a contract of insurance?
Legal process by which an insurance company, after the payment of a loss, is assigned the rights of the insured to recover the amount of the loss from those who are legally liable for it.
What is subrogation?
A standard of honesty greater than that usually required in most ordinary commercial contracts.
What is utmost good faith?
The value received to bind a contract.
What is consideration?
Any person (including a corporation) covered by an insurance policy.
Who is an insured?
More than one policy has been issued to insure a given risk and the loss is divided equitably among the various policies.
What is Contribution?
An incorrect statement made about a material fact.
What is a misrepresentation?
Consent, Capacity to contract, Cause of contract, Object of contract
What are the requirements of contracts in Quebec (Civil Code of Quebec)?
Lessees and tenants who may suffer loss of business if the property is damaged or destroyed.
Who is a stakeholder with an insurable interest in property?
An insured releases a third party who is responsible for a loss from the obligation to pay for the loss.
What is Prejudice?
The intentional withholding from an insurance company of information pertinent to a risk.
What is concealment?
A cause for avoiding a contract made by a minor under certain circumstances.
What is Lesion?
One to whom goods or property are entrusted for a stated purpose.
Who is a Bailee?
The remaining value of property after severe damage by fire or other peril.
Insurable interest, Indemnity, Utmost good faith.