uberrimae fidei

This term describes a class of contracts whereby one party has a duty to disclose material facts relevant to the subject matter of the contract to the other party. The is term applied in insurance contracts such that the insured legal person must disclose any relevant particular that may affect the insurer's decision to grant the insured a policy of insurance. In the event that a relevant disclosure does not take place, the contract is voidable at the option of the insurer

The duty may also apply to contracts for the sale of shares, land, and partnership.

The terms is also used in the context of fiduciary duties.

[Latin: of the utmost good faith].

Usage: The failure of the insured to act uberrimae fidei resulted in the cancellation of the insurance contract.

Related Words: fiduciary duty; voidable; contract; insurance; insured; insurer; subrogation; separate legal entity; fiduciary; separate legal personality; corporate veil; fiduciary relationship; void.