When parties are assumed to be acting according to the covenant of good faith and fair dealings, then it is accepted that neither party will do anything to destroy the rights of the other party, or attempt to interfere with the benefits the other party is to receive from entering into the contract. It is assumed that they will do their best not to break their word, attempt to squirrel out of their obligations, or deny any terms that are otherwise abundantly clear to the other party. The implied covenant of good faith and fair dealings is interpreted to mean that it is assumed that the parties to a contract will deal fairly with one another, acting in good faith. Typically, bad faith attempts are seen in contract negotiations, such as paying out insurance claims, or issuing a cancellation. Essentially, when someone acts in bad faith, he is attempting to deceive or mislead another person to gain some sort of advantage or benefit.
Or he may misrepresent the quality or value of something that is being bought or sold, such as a car or home, to fool the buyer or seller into going forward with the transaction. Someone who acts in bad faith may enter into an agreement with no intention of ever fulfilling its terms. For example, bad faith can be associated with hypochondria, wherein a person tricks himself into believing that he is seriously ill when he, in fact, is not. Someone can also practice bad faith against himself. Another example of bad faith might occur if an attorney argues a legal position that he knows is false, such as his client’s innocence (or lack thereof). An example of bad faith might occur if a boss makes a promise to an employee, with no intention of ever keeping that promise. When someone acts in bad faith, he is acting with the intent to defraud or deceive another person.
0 kommentar(er)
