There Need Not Be Negligence or Some Other Basis for Liability

question 126

True/False

There need not be negligence or some other basis for liability on the part of the insured for the insurer to pay out on the policy.

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Definitions:

Preexisting Duty

An obligation that one is already legally bound to perform, which cannot serve as consideration for a new contract.

Extortion

The act of obtaining something, especially money, through force or threats.

Preexisting Duty

Preexisting Duty is a legal principle stating that an action or service required by an existing contract cannot serve as consideration for a new contract.

Promissory Estoppel

A doctrine that applies when a promisor makes a clear and definite promise on which the promisee justifiably relies. Such a promise is binding if justice will be better served by the enforcement of the promise.