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Contract Glossary

Bona Fide

Definition

Latin for 'in good faith', it means genuine, legitimate, and without intent to deceive. A bona fide offer is a real offer, not a fake one. A bona fide purchaser is someone who bought something honestly, not knowing there was a problem with the seller's right to sell it.

In Practice

If you buy equipment from a seller who, unbeknownst to you, stole it, you might qualify as a bona fide purchaser, someone who paid fair value in good faith. This can protect your ownership rights in some jurisdictions. The term comes up often in contract disputes when one party claims the other wasn't acting in good faith.

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This content is for informational purposes only and does not constitute legal advice.