
implied covenant of good faith and fair dealing
The implied covenant of good faith and fair dealing is a legal principle ensuring that both parties in a contract act honestly and fairly toward each other, even if it's not explicitly stated in the agreement. It prevents one party from doing something that unfairly interferes with the other’s rights or benefits under the contract. Essentially, it promotes trust and integrity, requiring that both sides work in good faith to fulfill the contract’s purpose and avoid actions that would undermine it.