Duty of Good Faith
/ˈdjuːti əv ɡʊd feɪθ/
Definitions
- (n.) An obligation requiring parties to act honestly and fairly toward each other, refraining from deception or undermining the purpose of a contract or legal relationship.
The duty of good faith prevented the company from unfairly exploiting the contract loophole.
Forms
- duty of good faith
Related terms
See also
Commentary
Often implied in contracts, this duty ensures parties do not act in a way that frustrates the contract's purpose, even where not explicitly stated.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.