Good Faith and Fair Dealing

Good Faith and Fair Dealing refer to the expectation that parties in a contract will act honestly and fairly towards each other, upholding the spirit of the agreement. This principle ensures that no party undermines the contract's purpose or exploits loopholes to gain an unfair advantage. It applies to all contracts, promoting trust and cooperation. Essentially, it means that both parties should keep their promises and work together reasonably, allowing for mutual benefit and respect in their business relationship.