Implied Duty of Good Faith

The implied duty of good faith is a legal expectation that both parties in a contract will act honestly and fairly toward each other, avoiding actions that would unfairly harm the other party’s rights or benefits. It’s not always written down but is understood to exist so that neither side can do things like sabotage, withhold information, or act dishonestly to undermine the purpose of the agreement. Essentially, it encourages trust and fairness in contract relationships, promoting cooperation rather than exploitation.