A material fact is a
fact that a
reasonable person would recognize as relevant to a decision to be made, as distinguished from an insignificant,
trivial, or unimportant detail. In other words, it is a fact, the suppression of which would reasonably result in a different decision.
of a material fact that would cause a party to a
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to ...
to refrain from entering into the contract may be grounds for
rescission. For example,
misrepresentation
In common law jurisdictions, a misrepresentation is a false
False or falsehood may refer to:
* False (logic), the negation of truth in classical logic
*Lie or falsehood, a type of deception in the form of an untruthful statement
* false (Unix), ...
of a material fact on an application for
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
may give an
insurance company grounds to rescind an
insurance policy.
See also
*
Materiality (law)
*
Material witness
References
{{Authority control
Legal terminology