The correct answer is C. Life insurance contracts are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872.
A verbal contract is a contract that is made orally, without being written down. Verbal contracts are legally enforceable, but they can be difficult to prove if there is a dispute.
A wager contract is a contract that is made for the purpose of winning or losing money. Wager contracts are not legally enforceable in India.
A life insurance contract is a contract between an insurer and an insured, in which the insurer agrees to pay a sum of money to the insured’s beneficiaries upon the death of the insured. The contract must be in writing and must meet the requirements of the Indian Contract Act, 1872.
The essential elements of a life insurance contract are:
- Offer and acceptance: The insurer must offer to insure the life of the insured, and the insured must accept the offer.
- Consideration: The insurer must give consideration to the insured, and the insured must give consideration to the insurer.
- Intention to create legal relations: The parties must intend to create a legally binding contract.
- Capacity: The parties must have the capacity to enter into a contract.
- Lawful object: The object of the contract must be lawful.
If a life insurance contract does not meet all of these requirements, it may not be legally enforceable.