Implied Covenant Of Good Faith And Fair Dealing Legal Meaning and Definition

Here is a simplified definition of the legal term Implied Covenant Of Good Faith And Fair Dealing.

Implied Covenant of Good Faith and Fair Dealing (noun)

The Implied Covenant of Good Faith and Fair Dealing is an unspoken promise in a contract or agreement that everyone involved will act with honesty, fairness, and in good intention. This means no one will purposely break the contract, try to dodge responsibilities, or misinterpret the contract on purpose to manipulate the situation in their favor. In legal terms, this covenant is used to ensure that all parties in a contract treat each other fairly and fulfill their duties as agreed.