Theories of Good Faith in Contract Law

In contract law, good faith refers to the expectation that parties will deal honestly and fairly with each other. Theories of good faith suggest that contracts should not just be about strict adherence to terms, but also about the intent and fairness behind those terms. It promotes cooperation and discourages deceitful practices. Different legal systems interpret good faith in various ways: some see it as an implied duty within every contract, while others apply it to specific contracts, like employment or insurance. Ultimately, good faith aims to uphold trust and reliability in contractual relationships.