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Suppressio Veri: What You Need to Know About This Legal Concept
Definition & Meaning
Suppressio veri is a legal term that refers to the act of intentionally withholding or not disclosing important information that one is obligated to share. This practice can be considered a form of fraud, especially in situations involving contracts. When parties are bound by a contract, failing to disclose significant facts can lead to a breach of that contract, allowing the affected party to seek cancellation or other remedies.
Table of content
Legal Use & context
This term is primarily used in contract law, where parties have a duty to disclose certain information. Suppressio veri can arise in various legal contexts, including:
Business contracts
Real estate transactions
Insurance agreements
Users can manage some aspects of suppressio veri through legal forms and templates provided by services like US Legal Forms, which can help in drafting contracts that include necessary disclosures.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A seller of a property knows about significant foundation issues but chooses not to disclose this information to the buyer. If the buyer later discovers the issue, they may have grounds to cancel the sale based on suppressio veri.
Example 2: A company fails to inform investors about ongoing litigation that could affect the company's financial stability. This act of suppression could lead to legal consequences if investors suffer losses as a result. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Legal Context
California
Strong consumer protection laws against suppressio veri in real estate transactions.
New York
Specific statutes require full disclosure in certain contracts, including real estate.
Texas
Disclosure laws vary significantly; parties must be cautious in contract negotiations.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Fraud
Deceptive practices intended to secure unfair or unlawful gain.
Fraud encompasses a broader range of deceptive actions, while suppressio veri specifically involves withholding information.
Misrepresentation
Providing false information that induces another party to enter into a contract.
Misrepresentation involves false statements, whereas suppressio veri involves silence or omission of facts.
Common misunderstandings
What to do if this term applies to you
If you believe you have been affected by suppressio veri, consider taking the following steps:
Review the contract or agreement in question to identify any undisclosed information.
Document any evidence of the suppression.
Consult a legal professional for tailored advice on your situation.
You can also explore US Legal Forms for templates that may help you create a legally sound contract.
Find the legal form that fits your case
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