What is required for contracts of utmost good faith?

For contracts of utmost good faith, it is essential that the parties disclose information to each other. This principle is particularly significant in contracts where there is an inherent imbalance of information, such as insurance agreements or certain types of hospitality contracts. The requirement for disclosure ensures that both parties have a complete understanding of all relevant information that could affect the contract's execution and terms. By fostering transparency, the principle of utmost good faith protects both the contractual parties and helps mitigate the risks of disputes arising from misinformation or omissions.

The other options do not align with the essence of contracts requiring utmost good faith. Remaining silent about important information contradicts the very foundation of transparency and trust that such contracts demand. Trust is integral to transactions grounded in utmost good faith; thus, stating that no trust is required overlooks the nature of these agreements. Lastly, asserting that only one party needs to be knowledgeable does not support the mutual disclosure requirement that characterizes good faith dealings. Therefore, it is clear why disclosing information to one another is the correct approach in these scenarios.