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Which element of a valid contract deals with premium?
- AOffer and acceptance
- BConsideration
- CFree consent
- DCapacity of parties to contract
Correct answer: B
Discussion 1
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CCommunity
Consideration
Consideration of a valid contract deals with premium. A consideration is an exchange of money for the guarantee of an act preformed or another benefit provided. In the context of insurance, the insurance company gives the consideration of coverage for losses as long as premiums are paid.
Consideration of a valid contract deals with premium. A consideration is an exchange of money for the guarantee of an act preformed or another benefit provided. In the context of insurance, the insurance company gives the consideration of coverage for losses as long as premiums are paid.