Which element ensures the contract is enforceable at law?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the WebCE Insurance Exam with essential study techniques. Utilize flashcards, multiple choice questions, and in-depth explanations. Ace your insurance exam with confidence!

Multiple Choice

Which element ensures the contract is enforceable at law?

Explanation:
A contract must have a lawful objective to be enforceable. If the contract aims at something illegal or against public policy, a court won’t enforce it, even if there was an offer and acceptance and both parties were capable. The other elements relate to how a contract is formed, but legality of the purpose is what makes enforcement possible. Insurable interest applies specifically to insurance contracts to prevent wagering, not to general enforceability.

A contract must have a lawful objective to be enforceable. If the contract aims at something illegal or against public policy, a court won’t enforce it, even if there was an offer and acceptance and both parties were capable. The other elements relate to how a contract is formed, but legality of the purpose is what makes enforcement possible. Insurable interest applies specifically to insurance contracts to prevent wagering, not to general enforceability.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy