What are conditional contracts in insurance?

Insurance policies are known as conditional contracts. Failure to meet the policy’s conditions can result in the denial of coverage. Two types of conditions appear in an insurance policy: 1) conditions precedent and 2) conditions subsequent. The central point of these conditions is the loss or claim.

Can conditions be included in a conditional contract?

Both the buyer and the seller can request conditions to be included in the offer to a conditional contract. A conditional contract is legally binding if formed under contract law requirements. A condition of a conditional contract can also be a specific event, as long as the occurrence of which, when the agreement was formed, was uncertain.

Is a conditional contract enforceable?

If the other agreement or condition is performed, then the conditional contract is enforceable and the parties are bound to carry out the terms of the contract. Both the buyer and the seller can request conditions to be included in the offer to a conditional contract.