Duty of Disclosure

The Duty of Disclosure refers to the legal obligation of individuals, particularly in contracts and insurance, to honestly share important information. This means that when entering into an agreement, all parties must reveal any facts that could influence the other party's decision. For example, in insurance, a policyholder must disclose pre-existing medical conditions. Failing to provide this information can lead to complications, including claims being denied or contracts being canceled. Essentially, it's about ensuring transparency and trust between parties involved in a transaction.