Contract Glossary
Good Faith
Definition
An implied obligation to deal honestly and fairly with the other party. Most contracts include a duty of good faith whether it's written in or not, meaning you can't use the contract's terms to cheat the other side out of the deal's benefit.
In Practice
Good faith shows up when one party has discretion under the contract. If your agreement lets a publisher decide your book's print run 'in their sole discretion,' they still can't print 10 copies and claim they fulfilled the deal. Courts will step in when someone uses contractual rights in a way that defeats the contract's purpose.
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
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