RMI 3504 Lecture Notes - Lecture 2: Perjury, Uberrima Fides

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3504
• Professor: Wilkinson

Document Summary

Topic 2: fundamentals of contracts and ~~how insurance contracts differ from other types of contracts~~ 4. circumstances which may render a contract unenforceable. 5. circumstances in which a contract can be terminated. Offer= a promise that requires some action by the intended recipient to make an agreement. Offeree=person to whom the offer is made. Offer= in order to be a valid offer, three things are necessary: What is the effect on an offer of: 1. acceptance must be made by the offeree. 3. oferee must communicate the acceptance by appropriate word or act. Something of value given by both parties to a contract that induces them to enter into the agreement. Cannot contract for an illegal or wrongful act. All contracts including insurance contracts must involve legal subject matter. Any illegality will have an adverse impact on a contract. 1. fraud=an intentional misrepresentation resulting in harm to a person or organization. 2. mistake=a perception that does not agree with the facts.