Business Studies - Contracts

Aims to cover the insured for losses that may be incurred as a result of unforeseen circumstances.

• Indemnification

• Insurable interest

• Good faith

• Compulsory insurance

The insurer and insured must be honest in their dealings.

• Indemnification

• Insurable interest

• Good faith

• Compulsory insurance

Exists if the insured losses financially if the insured object is destroyed or ceases to exist.

• Indemnification

• Insurable interest

• Good faith

• Compulsory insurance

Market value is R50 000

Vehicle is insured for R75 000

• Overinsurance

• Underinsurance

• Good faith

If property is underinsured, the full amount of the damages will not be paid out by the insurer.

• True

• False

Select which of these insurance types are compulsory.

• Unemployment insurance

• Life insurance

• Road accident fund

• Medical insurance

Covers both the employer and the employee in case of injury or disease contracted in the workplace, during the course of the employee's employment.

• Unemployment Insurance

• Workmen's compensation

• Life insurance

• Medical insurance

Lease agreements of movable property are between a .....

• lessor and lessee

• seller and buyer

• tenant and a landlord

• insurer and insured

If property can be moved from one place to another without losing it's identity, it is .....

• immovable property

• movable property

• hire purchase

• credit agreement

The seller gives up possession to the purchaser, but remains the owner of the goods until the entire purchase price has been paid.

• Lease agreements of movable property

• Hire purchase agreement

• Lease agreements of immovable property