Question
In: Accounting
Thando buys a new vehicle from a car dealership. Before he could collect the vehicle from...
Thando buys a new vehicle from a car dealership. Before he could collect the vehicle from the dealership, he concludes an insurance contract with ADS insurance. In terms of the insurance contract, Thando undertakes to pay a premium of R1800, which will be debited from his account every month and the insurer undertakes to make good the damage that the insured may suffer. Upon collection of the vehicle, and before the payment of the first premium; Thando is involved in an accident. It later transpires that the vehicle cannot be repaired; it is a write-off. Thando is worried that the insurance will not make good the damage that he has suffered because he has not paid any premium yet. He approaches you for advice. Advise Thando on the legal position regarding his insurance policy and essentialia of a contract of insurance.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Calvin borrows $20,000 from a car dealership to purchase a vehicle. The car dealership charges 12%...
Calvin borrows $20,000 from a car dealership to purchase a
vehicle. The car dealership charges 12% interest, compounded
monthly. Calvin is expected to pay off the loan principal and all
interest charged with equal monthly payments over a 3-year
period.
a. What will Calvin’s monthly payment need to be? (4 points)
b. With the first monthly payment, how much of this payment will
be “interest”, and how much of this payment will be “principal”? (4
points)
c. Once the loan...
Calvin borrows $20,000 from a car dealership to purchase a vehicle. The car dealership charges 12%...
Calvin borrows $20,000 from a car dealership to purchase a
vehicle. The car dealership charges 12% interest, compounded
monthly. Calvin is expected to pay off the loan principal and all
interest charged with equal monthly payments over a 3-year
period.
a. What will Calvin’s monthly payment need to be? (4 points)
b. With the first monthly payment, how much of this payment will
be “interest”, and how much of this payment will be “principal”? (4
points)
c. Once the loan...
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