Good Faith
The principle of acting with honesty, fairness, and sincerity in legal and business dealings without intent to deceive.
What is Good Faith?
Good Faith is the principle of honesty, fairness, and sincerity in legal, contractual, or business dealings, where parties act without intent to deceive or defraud. It underpins obligations in contracts, negotiations, and fiduciary relationships.
Why It Matters?
It ensures trust, enforceability, and ethical compliance, and courts may assess good faith when evaluating performance, disputes, or breaches.
Example
A contractor negotiates a contract honestly, discloses all limitations, and performs obligations as promised, demonstrating good faith in the agreement.
Related Terms
Mediation
Litigation