Rajan took out a life insurance policy through an agent. He completed the necessary paperwork and issued a check, which the insurance company cashed three weeks later. However, Rajan died in an accident only one week after taking out the policy. Rajan's wife filed a claim, but the insurance company denied it, saying the process was not complete. Rajan's wife argues that cashing the check constituted acceptance of the proposal.

2. ABOUT THE CASE
• Rajan was interested in life insurance
• He took a help of an agent
• He completed necessary formalities and drew
the cheque
• Three week later insurance company
encashed the cheque
A WEEK LATER

3. ABOUT THE CASE
• Rajan died in an accident
• Rajan’s wife claim for a money
• Insurance company decline by saying
that process is not completed yet
• Rajan’s wife claim that the encashing of
cheque amount to acceptance of the
proposal

4. ISSUES FOR EXPLORATION
1. Who makes the offer?
 Rajan was making the offer

5. ISSUES FOR EXPLORATION
2. Who has set the terms of offer?
 Insurance company has set the terms of offer

6. ISSUES FOR EXPLORATION
3. To whom has the offer been communicated?
 offer been communicated to the agent

7. ISSUES FOR EXPLORATION
4. Who should communicate the acceptance of
offer?
 Agent should communicate the acceptance of
offer

8. ISSUES FOR EXPLORATION
5. To whom Should the communication of offer
be made?


9. ISSUES FOR EXPLORATION
6. Has the acceptance of offer been
communicated?
 No, the acceptance of the offer has not been
communicated

10. ISSUES FOR EXPLORATION
7. Has the offer been accepted?


11. ISSUES FOR EXPLORATION
8. Has a contract been formed between the
parties?
