If two parties enter into an insurance contract without full disclosure, what principle might be violated?

In the context of insurance contracts, the principle of good faith, also known as "uberrima fides," is foundational. This principle requires both parties, particularly the insured, to fully disclose all material facts that could affect the insurer's decision to provide coverage or determine the terms of the policy. When full disclosure is lacking, it can disrupt the trust essential to the insurance relationship, leading to potential misrepresentation or concealment of risk.

The violation of this principle can result in serious consequences, including the denial of a claim or the cancellation of the policy, as insurers rely on the information provided during the contract negotiation to assess risk and set premiums. Thus, maintaining utmost good faith ensures that both parties can rely on the information disclosed, fostering a fair and transparent transaction aligned with the intentions of both the insurer and insured.

Other principles mentioned—such as fairness, equity, or legality—do play roles in various aspects of contract law; however, in the specific context of insurance contracts, good faith is the central tenet.