Legal Definitions - uberrima fides

Definition: Uberrima fides is a Latin term that means utmost good faith. It is often used in legal contracts to indicate that both parties are expected to act with complete honesty and transparency.

Example: An insurance contract is a common example of a contract that requires uberrima fides. When someone applies for insurance, they are expected to disclose all relevant information about their health, lifestyle, and other factors that could affect their risk profile. If they fail to disclose something important, the insurance company could deny their claim later on.

Explanation: In this example, the insurance company is relying on the applicant to act with utmost good faith by providing all relevant information. If the applicant fails to do so, they are breaking the terms of the contract and could face legal consequences. By requiring uberrima fides, the insurance company is protecting itself from fraud and ensuring that it can accurately assess the risk of insuring the applicant.