What is meant by the phrase “contract uberrimae fides”

• Contract Uberrimae fides literally means contract of the utmost good faith.
• These are contracts excepting the common law principles of caveat emptor.
• Both parties are legally bound to disclose material facts about the transaction.
• Falure to disclose a material fact renders the contract voidable at the option of the innocent party. Examples include:
o Contract of insurance
o Partnership agreement.

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