Duty of Good Faith

The duty of good faith is a legal obligation that requires parties in a contract to act honestly, fairly, and with integrity toward each other. It means they must not deceive, mislead, or do anything to unfairly undermine the other party’s rights or expectations. This principle encourages cooperation and trust, ensuring that both sides honor the spirit of the agreement, not just the letter. In practical terms, it promotes honest communication and reasonable conduct, fostering a fair and balanced contractual relationship.