ELEMENTS OF INSURANCE CONTRACT

First of all a contract is an agreement between two parties enforceable by law. For a contract to be valid it requires the presence of the following:

1.Offer

2.Acceptance

3.Intention to create legal obligations 4.Legality of the object

5.capacity to contract

Explanations

#Offer: An offer comes from the insured called the proposer and submitted to the insurer

#Acceptance: As usual it comes from the insurer (insurance company) in a straight forward way

#Intentions to create legal obligations: Both parties must exhibit mutual intention to create a legal relationship among themselves

#Legality of the object: The object to be insured in an insurance contract must be legal

#capacity to the contract: It has to do with the extent of the contract