Uberrimae Fidei

The Latin term "uberrimae fidei" is also known as doctrine of utmost good faith is the principle that both parties entering into a contract are acting honestly towards one another and does not mislead or withhold critical information from one another. In a lending transaction, for example, the applicant must honestly disclose all financial and employment information. The lender must also act in good faith, by providing the applicant with a full list of terms and conditions.

This term is especially essential when one is involved in the insurance buying policy or applying for a loan from banks. Thats is why every time when one is involved in a contract, they have to sign their names at the bottom clarifying the truth and validity of the information provided by them during the contract. Any mislead or fake information provided in the contract will result in legal action. For example, mislead information in the Insurance policy will make the company has the right not to compensate the client.

Besides that, see also the case of Goh Chooi Leng v. Public Life Co. Ltd (1964) and case of New India Assurance v. Pang Piang Chong (1971).

Posted by ahkeenz at 6:44 PM