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Example
Case laws
Statutory link
Exceptions / limits
Opposite / Related
Exam tip
Memory trick
Key takeaway
Uberrima fides
| Literal meaning | Utmost good faith |
|---|---|
| Pronunciation | oo-BEH-rih-ma FEE-days |
In some contracts one party must disclose all material facts, even without being asked. It applies to insurance, partnership and similar contracts.
Example
A person buying life insurance hides that he has a serious heart condition. The insurer can refuse the claim.
Case laws
- Carter v. Boehm (1766), England: Lord Mansfield laid down that an insurer must be told all material facts, as only the insured knows them.
Statutory link
Section 45 of the Insurance Act, 1938 deals with when an insurer can question a life policy.
Exceptions / limits
Ordinary contracts follow the rule of caveat emptor, not this rule.
Exam tip
Asked with insurance contracts and disclosure.
Memory trick
Say everything that matters.
Key takeaway
Some contracts need full and honest disclosure.
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