ABSTRACT

This chapter discusses the various contracts that have developed the notion of the utmost good faith for their own purposes and not with any adherence to a grander design. It is instructive to consider other contracts that have been marked with the brand of uberrima fides, either with a view to discovering the essence or purpose of the duty as applied to insurance contracts or to provide a source for comparison of insurance law. Good faith insists on fair and open dealing between all contracting parties. Contracts of the utmost good faith require honesty and full disclosure. Apart from insurance contracts, the most common contracts of the utmost good faith are partnership agreements. A partner is bound to make full disclosure of all facts material to the carrying on of the partnership business during negotiations leading to the formation of or entering the partnership and during the currency of the partnership.