What is meant by contracts "uberrimae fidei"? Which contracts are in general may be treated as contracts "uberrimae fidei"?
CS Executive · Economic and Commercial Laws · PYQS · June 2017
What is meant by contracts "uberrimae fidei"? Which contracts are in general may be treated as contracts "uberrimae fidei"?
Answer & Explanation:
Contracts uberrimae fidei means contracts requiring utmost good faith. The followings are the contracts which are generally may be treated as contracts "uberrimae fidei":- Contract of insurance of all kinds: The assured must disclose to the insurer all material facts and whatever he states must be correct and truthful. Company prospectus: When a company invites the public to subscribe for its shares, it is under statutory obligation to disclose truthfully the various matters set out in the Companies Act. Any person responsible for non-disclosure of any of these matters is liable to damages. Also, the contract to buy shares is voidable where there is a material false statement or non-disclosure in the prospectus. Contract for the sale of land: The vendor is under a duty to the purchaser to show good title to the land he has contracted to sell. Contracts of family arrangements: When the members of a family make agreements or arrangements for the settlement of family property, each member of the family must make full disclosure of every material fact within his knowledge.
Topics: Contract Law
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