Duty of Good Faith and Fair Dealings

Learn about the definition for this legal term.

What is Duty of Good Faith and Fair Dealings?

Under the common law of contracts, the obligation of “good faith and fair dealing” is an implied and inescapable term of every agreement. Per the Restatement (Second) of Contracts, § 201, “Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.”

Further Reading

For more detailed information, see our related Contracts terms:

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