Uberrimae Fidei

The term of uberrimae fidei describes that a class of contracts whereby one party has a duty to disclose material facts relevant to the subject matter of the contract to other party. This 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 shares, land and partnership. The terms is also used in the context of fiduciary duties. By the way, the uberrimae fidei on Latin terms is defined as of the utmost good faith.

Uberrimae Fidei of Chitty on Contracts

"Mere non-disclosure of fact, material or not, does not ordinarily amount to misrepresentation, and the general rule is that in order to be actionable a representation must take an active form". But in certain cases a stricter rule is enforced.

"The most important of these are the contracts uberrimae fidei, in which knowledge og the material facts generally lies with one party alone, that party is under a duty to make a full disclosure of these facts, and failure to do so makes the contract voidable...The duty varies in its extent from one type of contract to another.

Contracts of insurance of every kind form the main group of contracts uberrimae fidei. Other examples generally included, though these are probably not all uberrimae fidei in the strict sense, are contracts to subcribe for shares in a company, family settlements, contract, for the sale of the land, contracts of suretyship, and partnerships. Contracts of service are not uberrimae fidei, are not contracts of sale of goods.