What term refers to the failure to disclose facts deemed fraudulent by law?

The term that refers to the failure to disclose facts deemed fraudulent by law is known as fraudulent omission. This concept is rooted in the legal principle that certain parties have an obligation to disclose material facts during transactions to prevent misleading or deceiving others. When these facts are deliberately withheld, it constitutes fraudulent omission because the omission of critical information can lead to misunderstandings or decisions that might not have been made had the information been properly disclosed.

In business law, fraudulent omission signifies that failure to provide essential information is not simply an oversight, but an act that can result in legal consequences due to its deceptive nature. This is particularly relevant in contexts like contracts, where one party may exploit the ignorance of the other to gain an unfair advantage.

The other terms, while related to disclosure and honesty, do not encapsulate the specific scenario of failing to disclose fraudulent information. Active concealment involves taking affirmative steps to hide facts, while mere silence generally indicates a lack of communication without the implication of fraud. Duty to speak reflects the obligation to disclose but does not inherently denote the act of failing to do so in a fraudulent context, which is why fraudulent omission is the most accurate term in this case.