Concealment is the act of intentionally or unintentionally not revealing information that should be disclosed and would otherwise affect the terms or creation of a contract. A concealment can occur through either purposeful misrepresentation or withholding of material facts. Where the information could not have been known by the other party and it is known to be material by the concealing party, the concealment can give grounds for nullifying the contract.
There are three types of concealments which are as follows:
- Active concealment: The non-disclosure by words or actions in a situation where there is a positive duty on the person to disclose something.
- Fraudulent concealment: The concealment where the person conceals something with the intent to deceive or defraud the other party.
- Passive concealment: The act of silence in a situation where the person had a duty to speak and disclose relevant information.
[Last updated in December of 2021 by the Wex Definitions Team]