1on 10 August 2011 jane concludes an agreement with AMG insurance in terms of which the company undertakes to compensate jane for any damage incase…

1on 10 August 2011 jane concludes an agreement with AMG insurance in terms of which the company undertakes to compensate jane for any damage incase of a fire .she inherited the house from her father. she undertakes to pay a monthly premuim of $300 and the first premuim will be due on 31 august. on 20 august the house burns down.

A as a contract of insurance came into existance on 10 august amg is bound to compensate jane for the damage.

B a valid contract will only come into existance when the first premuim is paid

2 paulus owes money to paul. the full amount of the debt is secured by suretyship contract in which evert is the surety and also by a cession to paul of paulus right to recieve payment from ryan

Which one is incorrect

A paulus may cede to evert his right to recieve payment from ryan

B paulus is not intitled to sue ryan for the money he owes him in order to pay paul

c evert is not entitled to benefit of division if paul attempts to recover the entire debt from him

d evert may possibly obtain a right to the money which ryan owes to paulus if he settles the entire debt

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