Definition. An agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

Which of the following is the most key element of contract?

There are five essential elements in a contract which include the following: offer, which is a promise and a demand of some sort; acceptance, which is the agreement to the terms of the offer presented; consideration, which is what is actually presented in exchange for the something in the contract; capacity, which …

What are the basic elements of an insurance contract?

The general elements of the contract can be further elaborated as follows. Offer and Acceptance: The insured makes an offer by submitting an application to insurance company. The insurer accepts and confirms the application and issues a policy. Consideration: The premium payable by…

What are the essential elements of life insurance?

It is a valid agreement that incorporates certain terms and conditions. It may be described as a social device to reduce or eliminate a risk of loss to life and property. The essential elements of insurance are listed below: The agreement means communication by the parties to one another regarding their intentions to create a legal relationship.

What should be included in an Indian insurance contract?

The valid contract, according to Section 10 of the Indian Contract Act 1872, must have the following essentialities; Legal object. The offer for entering into the contract may come from the insured. The insurer may also propose to make the contract.

What is the subject matter of an insurance contract?

The subject-matter is life in the life insurance, property, and goods in property insurance, liability, and adventure in general insurance. Insurable interest is essentially a pecuniary interest, i.e., the loss caused by fire happening of the insured risk must be capable of financial valuation.