The 4 Critical Elements Of a Insurance Contract

[USA Adjuster]

Which of the following is NOT one of the four critical elements of a contract?
a. A mutual understanding and agreement with the terms of the contract.
b. Consideration, consisting of money or a promise of performance.
c. Written evidence of the agreement and its terms.
d. A legal purpose.

[Zigner]

Originally Posted by USA Adjuster

Please help me to find the answer I got it wrong last night.....
I chose (B) simply becasue I did not think it would be ethical to consider promise out of performance towards anything...
Then I checked my score and (B) was actually one of the correct answers.
I have even gone as far as to Google the questions-- still nothing direct came up for the 4 critical elements.. Please help
Thanks

Which of the following is NOT one of the four critical elements of a contract?
a. A mutual understanding and agreement with the terms of the contract.
b. Consideration, consisting of money or a promise of performance.
c. Written evidence of the agreement and its terms.
d. A legal purpose.

Are you speaking of written or oral contracts?

[ecmst12]

In most things, contracts do NOT need to be written. So the answer was C. Only real estate contracts must be in writing, as far as I'm aware.

[moburkes]

a. A mutual understanding and agreement with the terms of the contract.
Both sides have to agree. Whether both sides really realize all the terms is a different story.
b. Consideration, consisting of money or a promise of performance.
The purpose of the contract is an exchange of something. In insurance, in exchange for premium payments, the insurer provides Coverages A, B, C, D, E, and F.
c. Written evidence of the agreement and its terms.
Contracts don't have to be written. I can pay you $15 to wash my car. I get my car washed, you get $15. It's not in writing, but it's a contract. Now, when it's not in writing it becomes more difficult to prove what the contract was, or that it actually existed, but it is still a contract.
d. A legal purpose.
You can't write a contract for something illegal.

[Stevef]

Originally Posted by USA Adjuster

Please help me to find the answer I got it wrong last night.....
I chose (B) simply becasue I did not think it would be ethical to consider promise out of performance towards anything...
Then I checked my score and (B) was actually one of the correct answers.
I have even gone as far as to Google the questions-- still nothing direct came up for the 4 critical elements.. Please help
Thanks

Which of the following is NOT one of the four critical elements of a contract?
a. A mutual understanding and agreement with the terms of the contract.
b. Consideration, consisting of money or a promise of performance.
c. Written evidence of the agreement and its terms.
d. A legal purpose.

B is a correct answer because consideration could be something other than money or a promise of performance. Consideration can be a promise of forbearance. A non-compete contract is a good example of forbearance. The classic case explaining this is when the uncle promised the nephew a sum of money if nephew would refrain from smoking, drinking, and womanizing until his 21st birthday. That contract was found to be enforceable.

C is also a correct answer. Not all contracts must be in writing. The Statute of Frauds determines what contracts must be in writing, so this can vary by state. The most common contracts covered by the statute of frauds are real estate purchases, contracts that cannot be performed within one year, and contracts for goods valued over $500.

[USA Adjuster]

Originally Posted by Zigner

Are you speaking of written or oral contracts?

Zinger -- I was speaking of a written contract-- I aplogize for not making that clear...

[USA Adjuster]

Originally Posted by ecmst12

In most things, contracts do NOT need to be written. So the answer was C. Only real estate contracts must be in writing, as far as I'm aware.

Ecmst12-- You are 199% correct!!!! Thank you sooo much----

[USA Adjuster]

Originally Posted by moburkes

a. A mutual understanding and agreement with the terms of the contract.
Both sides have to agree. Whether both sides really realize all the terms is a different story.
b. Consideration, consisting of money or a promise of performance.
The purpose of the contract is an exchange of something. In insurance, in exchange for premium payments, the insurer provides Coverages A, B, C, D, E, and F.
c. Written evidence of the agreement and its terms.
Contracts don't have to be written. I can pay you $15 to wash my car. I get my car washed, you get $15. It's not in writing, but it's a contract. Now, when it's not in writing it becomes more difficult to prove what the contract was, or that it actually existed, but it is still a contract.
d. A legal purpose.
You can't write a contract for something illegal.

Moburkes

WOW!!! Where did you find all of this information-----???? Good stuff-
This is straight to the point!!! Love It!!!! Thanx

[USA Adjuster]

Originally Posted by Stevef

B is a correct answer because consideration could be something other than money or a promise of performance. Consideration can be a promise of forbearance. A non-compete contract is a good example of forbearance. The classic case explaining this is when the uncle promised the nephew a sum of money if nephew would refrain from smoking, drinking, and womanizing until his 21st birthday. That contract was found to be enforceable.

C is also a correct answer. Not all contracts must be in writing. The Statute of Frauds determines what contracts must be in writing, so this can vary by state. The most common contracts covered by the statute of frauds are real estate purchases, contracts that cannot be performed within one year, and contracts for goods valued over $500.

Stevef--- I really thought (B) was the correct answer--- I got that answer wrong-- it was (C) Thanx---

Thanks To You All ----- for your efforts and kind help!!!!