Product Code Database
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, , or unimportant detail. In other words, it is a fact, the suppression of which would reasonably result in a different decision.
Falsification of a material fact that would cause a party to a contract to refrain from entering into the contract may be grounds for rescission. For example, misrepresentation of a material fact on an application for insurance may give an insurance company insurance fraud to rescind an insurance policy.
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