INSURABLE CONTRACT

This is an agreement between two or more parties which has legal consequences and is therefore legally enforceable.

CONDITIONS FOR IT TO BE VALID.

  1. It must be for a legal purpose-not ones that are prohibited law e.g. bhang
  2. The parties must have legal capacity to contract i.e. not under 18, insane,bankrupt,or lacking legal capacity to contract.
  3. The terms and conditions of the contract should be acceptable to both insured and the insurer.

There must be a payment and a consideration-The payment is usually inform of premiums paid the insured while the consideration is the insurance cover that the insured gets from the insurer.


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