New Jersey Jurisprudence Practice Exam

Which type of agreement does not allow for modifications once established?

1. Revocable prepaid funeral agreement

2. Irrevocable prepaid funeral agreement

3. Standard funeral service agreement

4. Memorial service agreement

The correct answer is: Irrevocable prepaid funeral agreement

An irrevocable prepaid funeral agreement is defined by its nature of being unchangeable once it has been established. This type of agreement is designed to provide financial security for funeral expenses, ensuring that the terms and prepayments are fixed and cannot be modified later on. The purpose of an irrevocable agreement is to protect consumers by safeguarding their funds against future increases in funeral costs, allowing them to plan and pay for their funeral services in advance with a clear understanding that their choices are locked in. This characteristic differentiates it significantly from other types of agreements which allow for modifications or cancellations, thus maintaining flexibility for the consumer. In contrast, revocable prepaid funeral agreements, standard funeral service agreements, and memorial service agreements typically include provisions that permit changes, reflecting a more adaptable approach to planning and financing funeral services. Those options are more common for individuals who may wish to alter their plans as circumstances change over time.