concealment


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Related to concealment: circumvention, insider trading, allocation concealment

concealment

n. fraudulent failure to reveal information which someone knows and is aware that in good faith he/she should communicate to another. Examples include failure to disclose defects in goods sold (the horse has been sick, the car has been in an accident), leaving out significant liabilities in a credit application, or omitting assets from a bankruptcy schedule to keep them from being available for distribution to creditors. Such concealment at minimum can be a cause for rescission (cancellation) of a contract by the misled party or a civil lawsuit for fraud. (See: fraud)

concealment

noun camouflage, confinement, cover, deceitfulness, disappearance, disguise, duplicity, evasion, furtiveness, hiding, incognito, invisibility, nonappearance, obfuscation, obscurity, obsuration, privacy, seclusion, secrecy, secretion, secretiveness, silence, stealthiness, subterfuge, suppression, suppression of the truth
Associated concepts: concealment of assets, concealment of information, concealment of material fact, concealment voiding an insurance policy, concealment with intent to deeraud creditors, evasive contempt
Foreign phrases: Aliud est celare, aliud tacere.To conceal is one thing; to be silent is another. Suppressio veri, suggestio falsi. The suppression of truth is equivalent to the suggestion of what is false.
See also: artifice, color, confidence, disguise, evasion, mystery, nonappearance, obscuration, privacy, subterfuge, veil

CONCEALMENT, contracts. The unlawful suppression of any fact or circumstance, by one of the parties to a contract, from the other, which in justice ought to be made known. 1 Bro. Ch. R. 420; 1 Fonbl. Eq. B. 1, c. 3, Sec. 4, note (n); 1 Story, Eq. Jur. Sec. 207.
     2. Fraud occurs when one person substantially misrepresents or conceals a material fact peculiarly within his own knowledge, in consequence of which a delusion exists; or uses a device naturally calculated to lull the suspicions of a careful man, and induce him to forego inquiry into a matter upon which the other party has information, although such information be not exclusively within his reach. 2 Bl. Com. 451; 3 Id. 166; Sugd. Vend. 1 to 10; 1 Com. Contr. 38; 3 B. & C. 623; 5 D. & R. 490; 2 Wheat. 183; 11 Id. 59; 1 Pet. Sup. C. R. 15, 16. The party is not bound, however, to disclose patent defects. Sugd. Vend. 2.
     3. A distinction has been made between the concealment of latent defects in real and personal property. For example, the concealment by an agent that a nuisance existed in connexion with a house the owner had to hire, did not render the lease void. 6 IV. & M. 358. 1 Smith, 400. The rule with regard to personalty is different. 3 Camp. 508; 3 T. R. 759.
     4. In insurances, where fairness is so essential to, the contract, a concealment which is only the effect of accident, negligence, inadvertence, or mistake, if material, is equally fatal to the contract as if it were intentional and fraudulent. 1 Bl. R. 594; 3 Burr. 1909. The insured is required to disclose all the circumstances within his own knowledge only, which increase the risk. He is not, however, bound to disclose general circumstances which apply to all policies of a particular description, notwithstanding they may greatly increase the risk. Under this rule, it has been decided that a policy is void, which was obtained by the concealment by the assured of the fact that he had heard that a vessel like his was taken. 2 P. Wms. 170. And in a case where the assured had information of "a violent storm" about eleven hours after his vessel had sailed, and had stated only that "there had been blowing weather and severe storms on the coast after the vessel had sailed" but without any reference to the particular storm it was decided that this was a concealment, which vitiated the policy. 2 Caines R. 57. Vide 1 Marsh. Ins: 468; Park, Ins. 276; 14 East, R. 494; 1 John. R. 522; 2 Cowen, 56; 1 Caines, 276; 3 Wash. C. C. Rep. 138; 2 Gallis. 353; 12 John. 128.
     5. Fraudulent concealment avoids the contract. See, generally, Verpl. on Contr. passim; Bouv. Inst. Index, h.t.; Marsh. Ins. B. 1, c. 9; 1 Bell's Com. B. 2, pt. 3, c. 15 s. 3, Sec. 1; 1 M. & S. 517; 2 Marsh. R. 336.

References in classic literature ?
Shuttleworthy, and thus bore it to a secure place of concealment a long distance off through the woods.
From some place of concealment near at hand Oolanga appeared, and came close to her.
Beneath a cluster of these which afforded perfect concealment from wandering air scouts, we lay down to sleep--for me the first time in many hours.
Werper, from the concealment of a jutting, granite shoulder, watched him pass up from the shadows of the stairway and advance toward the edge of the hill which faced the rim of the valley where the Waziri awaited the signal of their master.
I have seen several since my first encounter, and in each case the creature took to the sea for concealment as soon as it was disturbed.
Rook has any reasons for concealment, I believe you would have no chance of finding it out--unless, indeed, you could take her by surprise.
For my second place of concealment I chose what seemed in the darkness a narrow canon leading through a range of rocky hills.
We know when it is night, for then you retire to your houses and we can venture from our places of concealment to move unafraid about our old homes, to look in at the windows, even to enter and gaze upon your faces as you sleep.
Once in my new place of concealment, I watched them as they approached the tree.
time was the habitual concealment of our better selves--upon the whole, a far less dangerous national error than the habitual advertisement of our better selves, which has become the practice, public and privately, of society in this age.
But I hear some one exclaiming that the concealment of wickedness is often difficult; to which I answer, Nothing great is easy.
if there were less of this delicate concealment of facts - this whispering, 'Peace, peace,' when there is no peace, there would be less of sin and misery to the young of both sexes who are left to wring their bitter knowledge from experience.