Concealment


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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, 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 periodicals archive ?
The outcome has little to do with ethics and more to do with the expected level of expenses for product improvement, repairs, contingent contracts, or warranties - when these are appraised against the expected expenses of concealment. Equation (9) demonstrates that when a = 1 (so 1 - a = 0) the last term in the equation is equal to zero.
The American people have shown signs of resentful awareness of these patterns of concealment, as in the widespread anger at Robert McNamara for his quarter-century delay in acknowledging suppressed truths about Vietnam.
This Part reviews the evolution of the fraudulent concealment doctrine, evaluates the courts' application of the doctrine to the antitrust laws, and examines the disagreement among the courts on how to apply the doctrine.
It is worth mentioning that the Royal Supreme Authority has approved recently the implementation of the recommendations of the National Program for Combating the Commercial Concealment, which involves ten government agencies.
With the new solution, the concealment of 5G sites can be achieved.
Such concealment presupposes bad faith and intent to defraud the other party in giving consent to the marriage.
Valmont said the addition of Larson Camouflage concealment solutions to its portfolio is an advancement of its growth strategy in the wireless communication market.
On her disclosure about concealment of ammunition and other articles, police team recovered four numbers of gelatine rods, four numbers of cordite wire, thirteen detonators, one AK-47 magazine, two 9 mm magazines, twenty-nine AK series ammunition, Myanmar and Philippines currencies etc.
'As the trust was funded through remittances from Pakistan using official banking channels and was, therefore, in full knowledge of the State Bank of Pakistan, I say the question of concealment does not arise,' says the affidavit.
A temporal error concealment algorithm based on moment invariants is presented in [2].
"Concealment products offer a completely hidden covert compartment to keep contents known only to you," said CEO Rachel Buehl.
A housewife was charged in two Magistrate's Courts here today with one count of misappropriation of property and eight counts of fraudulently assisting the concealment of money amounting to RM4.93 million for the purchase of a piece of land in Kuala Lumpur.