Florida Insurance Claims Adjuster License Practice Exam

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What defines a Conditional Contract?

  1. A contract valid in all circumstances.

  2. A contract needing no conditions to be valid.

  3. An agreement requiring certain conditions to be met for enforcement.

  4. A contract that is non-binding.

The correct answer is: An agreement requiring certain conditions to be met for enforcement.

A Conditional Contract is an agreement between two or more parties that requires certain conditions to be met before the contract can be enforced. Option A is incorrect because a Conditional Contract does not necessarily guarantee the contract will be valid in all circumstances. Option B is incorrect because a Conditional Contract does have conditions that need to be met. Option D is incorrect because a Conditional Contract is binding once the conditions have been fulfilled.

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