Definition
An implied obligation in contracts to deal honestly and fairly with the other party, not exploiting technicalities or acting like a cartoon villain. It's a vague concept that somehow judges always know when you've violated.
Example Usage
The insurance company's refusal to investigate the claim was found to be a violation of the duty of good faith and fair dealing.
Origin
From Latin 'bona fides,' meaning 'good faith,' a principle in Roman law adopted into common law
Fun Fact
Every contract in the U.S. includes an implied covenant of good faith and fair dealing, whether it's written down or not, much to the annoyance of people trying to be sneaky.
Source: Common legal terminology
Related Terms
Translate This Term
See “good faith” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator