Vidyalelo
Commerce · Q512

Insurance

Graduate and Post Graduate · Commerce · question 512

Q512

Which element deals with premium in a valid contract?

A.
Consideration
Answer
B.
Offer and Acceptance
C.
Free Consent by the parties to the contract
D.
Capacity to contract

Answer: Option A

Solution

Answer: Option A
Solution:
Consideration deals with premium in a valid contract. Consideration means “something in return” (quid pro quo).