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.
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Frequently asked questions about good faith
In most U.S. states, yes — the Uniform Commercial Code and common law impose a duty of good faith in every contract's performance and enforcement. A few states (like New York) apply it narrowly. You can't waive the duty entirely, though some contracts try to limit it.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.