• 1 Marks

BL – May 2014 – L1 – SA – Q10 – Agency Law

Identifying a contractual arrangement with periodic premium payments.

The only type of contractual arrangement in which one party pays premium periodically to the other party is:
A. Contract of lottery
B. Landlord-tenant contract
C. Contract between Estate Agents and Tenants
D. Contract of insurance
E. Non-insurable contract

D. Contract of insurance

Explanation:
In a contract of insurance, the insured party pays a periodic premium to the insurer, who in return provides coverage for specific risks. This is the only contract in the options listed that involves regular premium payments.

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