Some legal characteristics of insurance contracts: unilateral contracts, personal contracts, aleatory contracts, contracts of adhesion, and conditional contracts. Which one of these characteristics is best illustrated by each of the following?

a. Lynn wants to purchase a used car. The seller had just purchased auto insurance, and offered to throw in the paid-up auto insurance to sweeten the deal for Lynn. The sellers auto insurance, however, will not cover Lynn if she purchases the car.

b. Mike and Susan purchased insurance on their cabin in the mountains. The insurance contract specified that coverage would not apply if heavy snow caused the roof of the cabin to collapse. One day it snowed three inches, and the roof of the cabin collapsed. The insurer denied the claim. Mike and Susan do not believe that three inches of snow in the mountains is heavy snow. If this claim is resolved in a courtroom, on what basis should Mike and Susan prevail?

c. Tony purchased homeowners insurance providing coverage for one year. He agreed to make quarterly premium payments. Tony got laid off from work after he paid the first premium He cant afford to make the other premium payments. While Tonys insurance company can suspend the coverage for non-payment of premium, the insurer cannot sue Tony to collect the other three premium payments.