What defines a conditional contract?

A conditional contract is defined by the requirement that specific conditions must be met for the contract to be enforceable. This is a fundamental characteristic of conditional contracts, distinguishing them from other types of contracts that may not have such prerequisites.

In the context of insurance, for example, a policy becomes enforceable when certain conditions—such as the payment of premiums or the occurrence of an insured event—are fulfilled. Failure to meet these conditions can lead to the contract being void or unenforceable, which underscores the importance of these stipulations in the overall agreement.

The other options do not define a conditional contract accurately. A contract that requires no conditions to be enforceable would be considered an unconditional contract, contrasting directly with the nature of a conditional contract. Validity for only a specific time period relates to terms of duration rather than conditions affecting enforceability. Lastly, stating that a contract can only benefit the insurer does not encompass the mutual obligations usually present in most contracts, including conditional ones, where both parties have specific rights and responsibilities.