This paper argues that automobile contracting is one of the most important tenets of the automobile industry as supported by the various articles on the import of contracting in the global business arena by Michael P. Vandenbergh. There are however specific areas of interest to all the parties involved in this process of automobile contracting as these are legally binding contracts which must adhere to the rules of contract law. I therefore endeavor to persuade one to have a critical look at these aspects and contracting as a whole. The various terms are to be understood by all parties lest one falls prey to the machinations of cons or merely businessmen out to make a good return on their investment.
In this discussion therefore, readers are encouraged to pay a closer look at the various highlighted critical areas while courts on the other hand have to follow the spirit, custom and letter of the law in enforcing these contracts. Insurers and their brokers must never pursue their pecuniary interest at the expense of other players in the industry, especially the consumers who rarely read the fine print of the contracts and later cry wolf. A lot of emphasis has been put on trying to decipher the various automobile contracts ranging from personal to group and their implications.
[...] All these are important in the stock-in-trade of those who are in the auto industry either as manufacturers, suppliers or distributors, or consumers. One must therefore be acquainted with the various technical aspects of this form of contract making lest he loses out in the long run. The various legal terminologies have made it hard for the layman to understand but however, the insurer is not obligated to show that he never allowed the client to read and understand the terms, a burden of proof which lies on the client. [...]
[...] This has created myriad claims that have not been honored by the underwriters since certain conditions and terms of the contracts have not been met. This has led to unimaginable losses of premiums by clients. Many have also laid blame on the insurers for non-disclosure. Many a clients are so much in a hurry that they do not ask for all the information required and use it as a weapon for not settling claims. Insurance Brokers and agents have the share of the blame since they are used to selling incorrect policy information to clients yet there relationship is as far as the buying of the policy goes. [...]
[...] All these parties are bound by several legal provisions which they must adhere to in the form of automobile contracts as they promise to undertake the task of providing a certain essential service to the automobile after the purchase. These can be auto purchase contracts or insurance contracts. The above however have basic and important essential parts which must always be included for a contract to have credibility and disassociate the industry from unscrupulous claims or merely cripple it due to the fact that no one can get compensation for any acts or omissions in the industry. [...]
[...] Purchase auto contracts can either be for lease, credit or cash purchase with the seller retaining or relinquishing his rights in the automobile depending on the terms of the agreement while auto assurance is an undertaking by an auto assurer to cover an automobile against a particular specified risk. In the event of the occurrence of the aforementioned risk then person who is has been affected by the damage will be compensated accordingly or any other third parties involved. Auto assurance on the other hand is divided into personal and commercial[v], which can be taken up depending on one's needs and preference. [...]
[...] Auto Insurance The Entrepreneur Network[viii] defines this as A contract for an automobile in which one party agrees to pay for another party's financial loss resulting from a specified event.” Most repairs are unexpected and very costly and therefore the doctrine of there being security in numbers is behind this aspect. A group of persons pull resources and whenever an unfortunate eventuality occurs, one is able to be remedied so as to go back to the original position. The idea is therefore not to enrich one but to afford him the luxury of continued enjoyment of that aspect of the automobile. [...]
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