Final answer:
Concealment in contracts allows for rescission when a material, deliberately hidden fact affects the injured party's decision to contract, and could not have been reasonably discovered. The provided reference outlines a scenario for contract termination due to non-delivery of possession rather than concealment.
Step-by-step explanation:
Concealment in a contractual context implies that a relevant fact has been intentionally kept hidden by one party, affecting the other party's decision to enter into the contract. In the example provided, if the owner cannot deliver possession of the residence to the residents as agreed, due to loss, destruction, or other reasons such as the failure of prior residents to vacate, there is a contingency in place to handle such a situation. This does not necessarily relate to concealment, rather it's about non-fulfillment of terms due to unforeseen circumstances.
To specifically answer the question regarding when concealment entitles the injured party to rescind the contract, a few conditions must be met. First, the fact concealed should be material, meaning it should be significant enough to have influenced the injured party's decision to contract. Second, the concealment must be deliberate, not an accidental omission. Lastly, the injured party must not have been able to reasonably discover the truth by their own due diligence. In these conditions, the injured party may have the right to rescind the contract, making it voidable at their discretion.
If a contract contains specific terms for cancellation and termination due to non-delivery of possession, parties usually adhere to these provisions, as these are not typically cases of concealment but rather contractual contingencies for unforeseen events.