The benefits/advantages of planning finance or financial planning are as follows

• The future needs for finance are transparent and understood, both in respect of the quantum and also the timing the finance(s) are required

• The enterprise is given time to arrange such finance reasonably in advance of needs so as not to create panics or getting the finance at the right pricing

• Knowing future financial requirements well ahead of needs enables the enterprise to select the most appropriate moment for arranging such finance

• A well thought-out financial plan from the enterprise gives assurance to potential investors/shareholders/bankers that:-
• (a) The enterprise is being properly manage with managers acting to direct future events and not merely reacting to past events &
• (b) The promises of management are properly based assessments within a realistic framework and not just being pure optimistic
• (c) Having a financial plan enable a definite form of financial control can be devised. Comparing actual figure with planned will immediately indicate when factors affecting financial needs begin to move in an unplanned direction eg stocks build up excessively or debtors payments being delayed.

Examples of Contract Uberrimae Fidei are as follows:

• Contract of insurance of all kinds-the assured must disclose to the insurer all material facts and whatever he states must be correct and truthful
• Company prospectus-when a company invites the public to subscribe for its shares, it is under statutory obligation to disclose truthfully the various matters set out in the Companies Act. Any person responsible for non-disclosure is liable to damage. Also the contract to buy shares is voidable where there are material false statement or non-disclosure in the prospectus.
• Contract for the sale of land-the vendor is under a duty to the purchaser to show good title to the land he or she has contract to sell
• Fiduciary relationship- example of such relationships are principal and agent, solicitor and client, trustee and beneficiary
• Contract of marriage engagement-every material fact must be disclosed by both the parties to a contract of marriage otherwise the other party is justified to break off the engagement
• Contract of family settlement-also require full disclosure of all material facts within the knowledge of the parties to such contracts. Such a contract is not binding if either party has been misled by the concealment of material facts.