Knowledgiate Team September 13, 0 4, 1 minute read An agreement enforceable at law is a contract. But what are the differences among them? Contracts which are free from any defect and enforceable at law of court at any time is a valid contract.
Offer and acceptance Although special rules apply to insurance contracts, such as the duty of disclosure, they do share much common ground with other types of contracts. A contract is a legally enforceable agreement: For an insurance contract, as with any contract, there must be agreement between the parties on the principal terms,2 which would presumably include the risk to be covered, the insured subject-matter, the duration of the cover, the premium and the benefit due in the event of a covered loss.
Where … there is a clear intent to create legal relations and the transaction or transactions are clearly of a commercial character, English Difference between void and voidable contract is perfectly ready to recognize the contractual relations that the parties so clearly intend and will not frustrate them on account of some difficulty of analysis.
In the absence of an arbitration clause this type of provision runs the risk of the contract being held void for uncertainty. However, since the passing of the Arbitration Actsection 46, it has been permissible for the parties to agree that the arbitrators can decide the dispute in accordance with principles other than legal principles, and even before the Act the courts had managed to uphold the contract by holding that the words did no more than relieve the arbitrators from adhering to strict rules of construction.
In insurance the offer will usually be made by the prospective insured completing a proposal form and sending it to the insurers.
It is important to distinguish a counter offer from a mere inquiry about the terms of the offer, which does not amount to a rejection. For example, where in response to a proposal by the prospective insured the insurer sends out a policy that includes a term of which the prospective insured was previously unaware, this might constitute a counter-offer.
Generally, the acceptance of the offer must be communicated to the offeror, unless the offeror waives this requirement. Where the insurers offer to renew an annual motor policy by issuing a cover note that extends the old policy, the motorist can be deemed to have accepted by driving on the basis of that offer.
This action was treated by the Court of Appeal as an offer that the insurers accepted by sending out a policy, so the parties were bound.
|Johan Steyn||January 22nd, at 4: The problem with common-law lawyers that predominates UAE, which is a civil law country, is their ineptitude to see light along the provisions of UAE Civil Code.|
|Table of Contents||There is no contract unless the following requisites concur: Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.|
The court was not saying that silence amounts to an acceptance—it is a general rule that it does not15—but merely that acceptance can, in appropriate circumstances, be inferred from conduct. Subsequently, the company completed and sealed a policy, but did not deliver it to Roberts.
He then suffered a loss through a burglary. The Court of Appeal held the insurers liable since their act of writing the policy signified acceptance even though they had not notified this fact to Roberts. It is a general principle of contract law that once an offer has been accepted and an agreement formed neither party may unilaterally withdraw.
Where a policy contains a term allowing cancellation by the insurer, it will usually also provide for a portion of the premium to be repaid to the insured. There is old authority to the effect that the breadth of such clauses is not a matter in which the courts will interfere: The insured also has certain statutory rights to cancel an insurance contract, which are independent of that contract.
In Canning v Farquhar,21 between completing the proposal form for life assurance and his agent tendering the first premium, Canning fell from a cliff and sustained an injury from which he later died. The Court of Appeal held that the insurers were not liable. Lord Esher MR and Lopes LJ decided that the offer was made when the premium was tendered and what came before that time was merely pre-contractual negotiation.
Since this represents the majority opinion it is the ratio decidendi of the case, but Lindley LJ reached the same conclusion by a different method. While he agreed that what went on before the tendering of the premium did not amount to a binding contract, he believed it was important since only by referring to what the other judges called negotiations could the terms of the contract be determined.
He regarded the offer by the insurers as represented by the proposal plus the extra terms, such as the amount of the premium, which were mentioned later.Our difference. We’ve made it our mission to change the way you think about premium funding, with a dynamic team of specialists who will go the extra mile to help your business succeed.
Void vs Voidable. When dealing with contracts, the terms void and voidable are widely used. A void contract is considered to be a legal contract that is invalid, even from the start of signing the contract.
Feb 20, · The terms used in the field of business contracts seem to contradict many people, especially those who do not have a legal background. Void agreements and void agreements are some of the commonly used words that people cannot tell the difference.
Knowing the difference between void contract and voidable contract will help you to understand these two terms clearly. this article makes an attempt to clear completely differentiate void and voidable contract.
While a void contract becomes invalid at the time of its creation, a voidable contract only becomes invalid if it is cancelled by one of the two parties who are engaged in the contract.
In the case of a void contract, no performance is possible, whereas it is possible in a voidable contract. Full text of the Civil Code of the Philippines [Republic Act No. ]. Featured on the World Wide Web by The Law Firm of Chan Robles & Associates - Philippines.