Asked by Massiel Toribio Peralta on Jun 05, 2024
Verified
Buyers obtain an insurable interest even though they might later reject or return the goods to the seller.
Insurable Interest
A requirement that the person purchasing insurance has a legitimate interest in the preservation of the life or property insured, ensuring they will suffer financial loss if the insured event occurs.
Buyers
Individuals or entities that procure goods or services in exchange for payment.
- Explore the concept of insurable interests in goods, including buyers' and sellers' rights.
Verified Answer
GW
Gracie WebsterJun 07, 2024
Final Answer :
True
Explanation :
Buyers obtain an insurable interest in the goods immediately upon entering into the contract, even if they later return or reject the goods. This is because they have a temporary right of possession and control over the goods, which can be insured against loss or damage during that period.
Learning Objectives
- Explore the concept of insurable interests in goods, including buyers' and sellers' rights.