Question

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

a) (Estoppel)
b) (Aleatory)
c) (Adhesion)
d) (Unilateral)

Answer 1

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. This type of contract is known as a unilateral contract.

Step-by-step explanation:

In an insurance contract, the insurer is the only party who makes a legally enforceable promise. This type of contract is known as a unilateral contract. In a unilateral contract, one party makes a promise in exchange for the completion of a specified act by the other party. The promise becomes legally binding once the act is performed. In this case, the insurer promises to provide coverage and benefits if the insured party pays the premiums and fulfills other obligations.

For example, in a life insurance policy, the insurer promises to pay a death benefit to the designated beneficiary if the insured person dies. The insured person is not required to do anything specific, but they must pay the premiums to keep the policy in force.