Contracts 1
These contracts are also referred to as deed or under seal
What is a specialty contract
When one party fails to do what he or she promised to do in the contract referred to as?
What is a breach
This is a temporary invoice used in cases where funds are being borrowed from financial institutions to purchase items.
What is a pro forma invoice
Insurance that covers risks that will occur is referred to as
What is assurance
Restoring the insured to their original position is referred to as
What is indemnity
The price paid by one party for the promise of the other is called
What is consideration
each party completing his obligations as stipulated by the contract describes which termination method of a contract?
What is performance
This business document is issued to a customer when there has been an overcharge on an invoice due to faulty arithmetic or when goods have been returned.
What is a credit note
This statement represents what principle of insurance? The damage caused must be close to the event insured against
What is proximate clause
With this insurance policy payment will be made upon the death of the insured and the beneficiaries of the insured will be paid.
What is a whole life policy
Goods displayed in a shop or a store with a price tag and Property(real estate advertised for sale) are examples of
What is an invitation to treat
"All parties to the contract are agreed but are equally mistaken regarding some element in the contract" This represents which mistake in a contract?
What is a common mistake
This is a document from a supplier to a customer outlining all the transactions carried out over a particular period
What is a statement of account
What are the two categories of insurance?
What are life and non-life insurance?
This policy covers loss due to damages of ships and cargo at sea.
What is marine insurance
This is a compensation for a breach of contract that involves the unmaking of a contract to bring all parties effectively back to the position they were in before the contract was made
What is recission
When the time limit set for the contract to be executed by both parties has been passed refers to which termination method?
What is lapse of time
If this is added to the bill of lading, then the goods delivered are damaged.
What is a dirty bill
The insured must be truthful concerning the information pertaining to the policy contract refers to what insurance principle?
What is Utmost Good Faith
With this type of insurance payments are made at the end of specific periods for e.g at the end of twenty or thirty years or at the age of retirement.
What is an endowment policy
Parties to the contract must be over 18 years, of sound mind and not under the influence of drugs or incarcerated refers to what element of a simple contract?
What is capacity
These contracts are made by the observed actions of the parties involved. For example, someone who sits at a table in a restaurant and places an order has implied that he will pay for the food that will be served. What type of contract is this?
What is an implied contract
This document states the country in which the goods were manufactured
What is a certificate of origin
This type of insurance policy is used by businesses to protect against loss by fraud and stealing by employees
What is fidelity insurance
The amount to be paid for a contract of insurance is referred to as
What is a premium