...A contract of life insurance is one in which one party agrees to pay a given sum upon the happening of a particular event contingent upon the duration of human life , in consideration of the immediate payment of a smaller member sum or certain equivalent periodically payment by another. The origin of the concept of life insurance, as we know it, can be traced to ancient Rome. Caius Marius a military leader created a burial club among his troops, so in the event of the unexpected death of a clubs member, other members would pay for the funeral expense. The history of life insurance dates back to 3000BC. Learned scholars expression “Yagaksheman” found in the Rig Veda refers to a sort of social welfare insurance; the ancient Aryans seem to have developed such a concept. Edwin W Kopt in his treatise origin developed and practices of livestock insurance , credits India with being the mother of insurance practices, and opines that the development started in India and after that spread to ancient Babylon. Insurance began as a way of reducing the risk of traders, as early as 5000 BC in china and 4500 BC in Babylon. Life insurance dates only to ancient Rome; burial clubs covered the cost of member’s funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century in England, originally as insurance for traders: Merchants, ship owners and underwriters met to discuss deals at Lloyds coffee house, predecessor to the famous Lloyds of London. The first...
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...Insurance Contracts This project deals with the accounting for insurance contracts. As stated on the site, “accounting for insurance contracts does not provide users with the information they need to meaningfully understand the insurer’s financial position, performance and risk exposure.” Additionally, IFRS does not provide the proper guidance to how insurers should handle certain issues. The main goal of the Insurance Contracts project is to provide a single principle-based standard to account for all types of insurance contracts. Also, because comparability between entities is largely lacking today, the Insurance Contracts project also aims to enhance the comparability of financial reporting between them. The Insurance project is broken down into 2 phases. The first phase coincides with the issuance of ‘IFRS 4 Insurance Contracts,’ which “offered limited improvement in account by insurers and enhanced disclosures on amount, timing and uncertainty of future cash flows from insurance contracts.” Phase 2 will be the issuance of a new Insurance Contracts Standard, which will actually replace IFRS 4 (Insurance Contracts). Leases The Leases project deals with the reporting of lease information to investors and analysts. The main goal of the project is to develop a new standard that will establish the guidance for entities to follow on reporting information regarding the amount, timing and uncertainty of cash flows arising from a lease. As stated in the work plan, in...
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...Production Corporation (PEPCO), wanted to default on PEPCO’s contract with John’s company, Offshore Drilling Incorporated (ODI). Sprague gave two weeks notice until the papers would be filed. ODI is an offshore drilling contractor that provides mobile drilling rigs, as well as the expertise and personnel to drill the wells on behalf of exploration and production (E&P) companies. John’s client, PEPCO, was one such company. ODI had developed and was operating a rig for PEPCO, and the contract specified that PEPCO would pay ODI a fixed fee, or “day rate” for each day ODI spent on site drilling for oil with the rig. The day rate specified in the contract between PEPCO and ODI translated into roughly $105,000 per day. When the 39-month contract was first signed, in December of 1995, the price of oil was roughly $19 per barrel, and this left PEPCO with a healthy profit. Since the beginning of December of 1997, however, the spot price of oil had dropped about 20%, from about $19.00 to less than $15.00 per barrel. (See Exhibit 1.) When the price of oil drops below the cost of production, E&P companies typically halt production and exploration, and this was one option that PEPCO was considering. In this case, PEPCO would default on its contract with ODI, and this might lead the two companies into costly and protracted litigation. An alternative that Sprague proposed to John was for ODI to share some of the losses with PEPCO. The contract would be rewritten so that the day rate PEPCO paid to ODI...
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...entered into a written employment contract to hire Dennis Winkel. The contract provided for an annual salary, insurance benefits, and other employment benefits. Another doctor, Dr. Quan, also practiced with Dr. Vranich. About nine months later, when Dr. Quan left the practice, Vranich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-sharing bonus. During the next year, Winkel received the increased salary. However, a disagreement arose, and Winkel sued to recover the profit-sharing bonus. Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing. Does Winkel receive the profit-sharing bonus? Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? Winkel v. Family Health Care, P.C., 205 Mont. 40, 668 P.2d 208, Web 1983 Mont. Lexis 785 (Supreme Court of Montana) (Cheeseman 2010, p. 158) Cheeseman, H. (2010). Business Law: Legal Environment, Online Commerce, Business Ethics, and International Issues. Upper Saddle River: Pearson Prentice Hall. Issue Under Montana law, a written contract can be modified only in writing or if an oral agreement had been executed. Was the oral agreement between Vranich and Winkel executed? Is the contract unenforceable? Did Vranich...
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...Winkel had a written employment contact. A modified verbal contract was entered into which included a higher salary for Winkel as well as profit-sharing bonus. FHC delivered on increase in salary but failed to execute on the profit sharing. The issue is whether the verbal contract is sufficient to override the written contract between the two parties. Montana law states a written contract can be altered only in writing or by an executed oral agreement. FHC did not execute on the profit-sharing and therefore may not be liable to pay. FHC upheld the modified oral agreement when it paid the higher salary. Executing part of the verbal contract could infer acknowledgment of the modified written contract to pay the profit-sharing. Vranich defense was that there contract could not be enforced because it was not in writing. Presenting this defense seems unethical only if there was actually a verbal amendment to the written contract. Otherwise, there may be no ethics issue at all. In my opinion, Winkel should receive the profit-sharing bonus. Dr. Vranich enforced the oral agreement when the higher salary was paid and was not ethical in the decision to not honor the profit-sharing agreement. According to the case file, the jury agreed and awarded Winkel the profit-sharing. After reading the case online, there were many issues at play regarding this written, verbal contract. The best solution would have been for the contract to be properly renegotiated after the departure of the...
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...in raising the defense that the contract was not in writing? 5 10.7 Acceptance 6 Who wins? 6 11.4 Preexisting Duty 7 Can Gough recover? 7 13.1 Unilateral Mistake 8 Can the estate rescind the contract? 8 References 10 Assignment Week 1 We researched several cases this week where we discussed and answer several questions related with the chapters 9, 10, 11, and 13. All the questions were answers based in our best knowledge of the topics related to each case. 9.4 Business Ethics. "Lauren Vranich, a doctor practicing under the corporate name Family Health Care, P.C., entered into a written contract to hire Dennis Winkel. The contract provided for an annual salary, insurance benefits, and other employment benefits. Another doctor, Dr. Quan, also practiced with Dr. Vranich. About nine months later, when Dr. Quan left the practice, Vranich and Winkel entered into an oral modification of their written contract whereby Winkel was to receive a higher salary and a profit-sharing bonus. During the next year, Winkel received the increased salary. However, a disagreement arose, and Winkel sued to recover the profit-sharing bonus. Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing. Does Winkel receive the profit-sharing bonus? Did Dr. Vranich act ethically in raising the defense that the contract was not in writing? Winkel v. Family...
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...Computers entered into a five-year insurance contract with Tokyo AFM against earthquake damage to its headquarters building. As is customary, it paid the 100 million premiums for the five-year coverage up front in cash. Question: How would you recognize revenues associated with this type of catastrophe insurance contract? This case can be considered as premiums from short-duration insurance contracts, which are intended to cover expected claim costs resulting from insured events that occur during a fixed period of short duration. As of now the management is recognizing premium at the time it received policyholder’s up-front cash payment, but they should recognize the premium as earned revenue over time as the risk covered by the policy runs off. This is called a “deferral-matching approach”, as it attempts to defer recognition of any revenue or expense so that it can be matched with the timing of the incurred losses. Therefore, premiums from short-duration contracts are earned and recognized as earned revenue evenly as insurance protection is provided. In this case of Fuji computers the 100 million premiums being recognized as revenue evenly over the contract period of five years. I believe that up-front payment, are earned as services are delivered and/or performed over the term of the arrangement or the expected period of contract and premiums shall be recognized as earned revenue over the period of risk in proportion to the amount of insurance protection provided. 2...
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...………………………………………………………………… 21 6. Legal Corrective Measures ………………………………………………………. 23 7. Conclusion ……………………………………………………………….............. 24 8. Appendices ………………………………………………………………………. 25 9. Works Cited ……………………………………………………………………….. 31 10. Contract…………………………………………………………………………… 32 2 1. Executive summary This paper will study a contract, common in business law; but more specifically, this report will analyze a credit card agreement from CIBC Visa. In studying this contract, it will show what a contract is and the legal framework that it implies. In studying the clauses of this contract, one will familiarize oneself with the legal terms and jargon that all contracts consist of. In explaining these clauses, one might be able to divide them into twelve main principles that a contracting agreement should consist of. This paper will then analyze the clauses and any potential flaws or problems, and later suggest changes that should be applied. These can be considerable change, for instance, adding or removing clauses or can be simply a small change, such as changing a few words in a clause or fixing a spelling error. This report will then move on to challenge the legal reasoning of the contract and finally explain the legal corrective measures that are identified at the end of this paper. All of these things will be tied into the general foundation of business law and how they all...
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...Recommendation ………………………………………………………………… 21 6. Legal Corrective Measures ………………………………………………………. 23 7. Conclusion ……………………………………………………………….............. 24 8. Appendices ………………………………………………………………………. 25 9. Works Cited ……………………………………………………………………….. 31 10. Contract…………………………………………………………………………… 32 1. Executive summary This paper will study a contract, common in business law; but more specifically, this report will analyze a credit card agreement from CIBC Visa. In studying this contract, it will show what a contract is and the legal framework that it implies. In studying the clauses of this contract, one will familiarize oneself with the legal terms and jargon that all contracts consist of. In explaining these clauses, one might be able to divide them into twelve main principles that a contracting agreement should consist of. This paper will then analyze the clauses and any potential flaws or problems, and later suggest changes that should be applied. These can be considerable change, for instance, adding or removing clauses or can be simply a small change, such as changing a few words in a clause or fixing a spelling error. This report will then move on to challenge the legal reasoning of the contract and finally explain the legal corrective measures that are identified at the end of this paper. All of these things will be tied into the general foundation of business law and how they all connect. 2. Introduction This paper is designed to explain a typical credit...
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...1. Introduction 1.1 From the dawn of human civilization, we, human being are directly or indirectly dependent to each other. For our better living, we created family, then formed group/society, then country and international community. Each individual, each family, each group and each country are dependent on each other by some means. For the easy exchange of dependency, people introduced business. “Business is defined as the exchange of goods, services or money for mutual benefit or profit.” (Skinner and Ivanncevich, 1992, p.8) The organizations that involve in profit making activities are called business organizations. Business may be trade, commerce or industry. To make business organized, it must be governed by some rules and regulations which we call business laws. Each country has independent business laws. Business organizations must operate within the boundaries of laws and government regulations. 1.2 Laws have been developed not only to protect consumers but also to preserve competition. Government agencies enforce these laws at the federal, state, and local levels. Business firms that do not comply with the laws face fines and other penalties. 2. Aim The aim of this assignment is to give a general idea regarding the laws that affect business. 3. Scope In this assignment I have limited my focus on the laws of Bangladesh that affect business. However, I have also focused on some of the laws of USA, UK and India those affect business but not yet clearly...
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...representative organizations, the employer representative organizations in the labor relation and other relations directly related to the labor relation, the State management of labor. Article 2. Subjects of application 1. The Vietnamese employees, apprentices, interns and other employees specified in this Code. 2. The employers. 3. Foreign employees working in Vietnam. 4. Other individuals, agencies and organizations directly related to the labor relation. Article 3. Interpretation of terms In this Code, the following terms are construed as follows: 1. Employees are people from 15 years old and above, capable of working, working under labor contracts, receiving salaries and subject to the management of the employers. 2. The employers are enterprises, agencies, organizations, cooperatives, households and individuals hiring, employing employees under labor contracts. The individuals must be sufficiently capable of civil acts. 3. The labor collectives are organized collectives of the employees working for one employer or in one division under the organizational structure of the employer. 4. The internal labor representative organizations are the executive board of the internal Union or the executive board of the direct superior Union if the internal Union has not been established 5. The employer representative organizations are organizations legally...
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...EMPLOYMENT CONTRACT This Employment Contract (this "Contract") is made effective as of December 27, 2012, by and between {business name}. {DBA} of {business address} and {employee full name} ("{goes by name/first name"), of {employee address}. A. {DBA} is engaged in the business of {business type/purpose}. {Employee name} will primarily perform the job duties at the following location: {business address}. B. {DBA} desires to have the services of {employee name}. C. {employee name} is willing to be employed by {business name}. Therefore, the parties agree as follows: 1. EMPLOYMENT. {business name} shall employ {employee name} as a(n) {employee job title}. {employee name} shall provide to {business name} the services described on the attached Exhibit A, which is made a part of this Contract by this reference. {employee name} accepts and agrees to such employment, and agrees to be subject to the general supervision, advice and direction of {business name} and {business name} Institute's supervisory personnel. {employee name} shall also perform (i) such other duties as are customarily performed by an employee in a similar position, and (ii) such other and unrelated services and duties as may be assigned to {employee name} from time to time by {business name} Institute. 2. BEST EFFORTS OF EMPLOYEE. {employee name} agrees...
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...Contract Administration Preparation of log book BSc construction management Contents 1. Roles and relationships 2.1 Conflicting professions 2.2 Consultant roles 2.3 Professional service agreements 2. procurement systems 3.4 Procurement 3.5 Design and build 3.6 PFI - private finance initiative 3. contractor selection and tendering procedures 4.7 Purpose of tendering 4.8 Selective tendering 4.9 Negotiation 4. contract choice (JCT/NEC etc.) and contract terms 5.10 Standard form 5.11 JCT Joint contracts tribunal 5.12 NEC New engineering contracts 5. liability in tort (and the duty of care) 6.13 Tort 6.14 Liability in tort 6.15 Duty of care 6. contractor’s/employers obligations 7.16 Terms of contract 7.17 Contractors obligations 7.18 Employers obligations 7. time in contracts 8.19 Commencement 8.20 Extension of time 8.21 Completion 8. payments (including variations and loss and expense) 9.22 Contract price 9.23 Variations 9.24 Loss and expense 9. ensuring performance 10.25 Retention money 10.26 Insurance 10.27 Bonds 10. sub-contracting 11.28 Sub-contracts 11.29 Prevalence of sub-contracting 11.30 K 11. References 12. Appendices – further reading 1. Roles and relationships 1.1 conflicting professions...
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...SEMESTER: Final DATE: Oct. 13, 2010. Indemnity “A contract of indemnity is one in which the party sought to be made liable him or herself undertakes a primary liability to make good another’s loss, which loss may or may not result from the act of another (third) person”. “An expressed or implied contract to compensate an individual for loss or damage; for example, an insurance policy”. “A contract by which one party promises to save other from loss caused to him by the conduct of the promisor or by the conduct of any other person is called a contract of indemnity”. Essentials of contract of indemnity An indemnity is a personal security undertaking given by a third party, but under an indemnity the surety’s obligation is independent of debtor/creditor relationship. It is therefore a primary liability, not dependent on the debtor’s default. Indemnity is not given by repayment after payment. Indemnity requires that the party to be indemnified shall never be called upon to pay. In a contract of indemnity not only is there no requirement for a default by a third party as a condition of liability but there may not even be a third party involved for either the creation or exercise of the right. Indemnity holder Indemnifier Guarantee When getting a bank loan, a person is often asked to provide a guarantee. Guarantee an indemnity are often used to reinforce each other. “A contract of guarantee is an undertaking by which a person accepts what is...
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...8.0. LIFE INSURANCE Life insurance usually referred to as “life assurance’ insures the insured against the happening of certain event i.e. death through the time when it may happen is uncertain. It is a civilized world’s solution to the problems caused by death. The event insured against is usually a tragic one, one that causes damage and loss of life to the policy holder. The service takes place in tragic circumstance and it helps to relieve the impact of the tragedy, partly, not wholly to the family members/nominees of the policy holder. The service is thus intrinsically satisfying, its infinite potential to give cheer ad happiness, is often flawed by the rigidities of procedure. Section 2 of the Indian insurance Act, 1938 has defined life...
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