Good Faith Doctrine

The Good Faith Doctrine is a principle that requires parties in a contract to act honestly and fairly towards each other, fulfilling their obligations without undermining the agreement’s purpose. It emphasizes that neither party should take advantage of the other or act in a way that betrays trust. This concept is essential in legal and business contexts to ensure that interactions are conducted with integrity, fostering cooperation and preventing disputes. In essence, it promotes ethical dealings and expects all parties to uphold their responsibilities sincerely.