What Is the Basic Premise of Contract Law

question 37

Multiple Choice

What is the basic premise of contract law?

• A) To effectuate the expectations of the parties to an agreement
• B) To promote commerce
• C) To promote economic growth
• D) To promote interstate commerce
• E) To encourage a free-market society and greater financial security for the parties

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Definitions:

Coinsurance Clause

A provision in an insurance policy that defines the split of costs between the insurer and the insured after the deductible is met.

Coinsurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, serving to share risk between the insurer and insured.

Life Policy

A contract with an insurance company that pays a designated beneficiary a sum of money upon the death of the insured person.

Premiums Payable

Liabilities on an insurance company's balance sheet, representing amounts due to policyholders.