The Duty of Good Faith- How Good Do You Need To Be?

Good Faith is a legal concept that is often bandied about when parties to a contract are having a dispute. We intuitively understand Good Faith to mean being reasonable or fair. This is in line with some common definitions of Good Faith:

• honesty in fact and observance of reasonable standards of fair dealing;
• faithfulness to an agreed common purpose and consistency with the justified expectations of the other party; and
• the absence of bad faith.

Now that we know what it means, the real question is: how does it affect the day-to-day world of commercial leasing? For this, we need to look at this legal concept in action: how it has been used by the Courts, where it is headed, and, how it impacts commercial behaviour, if at all.

Read the full article here: The Duty of Good Faith – How Good Do You Need to Be- January 20-2006