(C) NON-DISCLOSURE
Usually, a failure by the defendant to disclose material facts to the claimant will not enable the claimant to rescind the contract.[1] However, in certain limited circumstances the defendant’s failure to disclose material facts will render the contract voidable at Common Law where the claimant was induced to enter into the contract by reason of the nondisclosure. There is a duty to disclose material facts in respect of contracts of insurance,[2] and in surety transactions the creditor is under a duty to disclose to the surety any unusual feature of the contract between the debtor and the creditor which makes the contract materially different in a potentially disadvantageous respect from that which the surety would naturally expect.[3]
