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.

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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.

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.

Quick facts

  • Typical context: Contract law
  • Potential consequences: Contract cancellation, damages
  • Common areas: Real estate, business agreements, insurance

Key takeaways

Frequently asked questions

Review the contract, gather evidence, and consult a legal professional for advice.