What are the duties of good faith and fair dealing in a business transaction?

Good faith and fair dealing are essential parts of a business transaction in Washington. It is a legal requirement that all parties involved in a business transaction must have a duty to act in good faith during the negotiation and performance of a contractual agreement. Good faith and fair dealing dictate that neither party deliberately misrepresents facts or withholds important information in order to gain an advantage. The overall spirit of good faith and fair dealing requires the parties to cooperate and act honestly in order to fulfill the contractual obligations. In other words, the parties must take reasonable steps to ensure that the transaction or contract is successful. This means that both parties must make reasonable efforts to complete the transaction in a timely and effective manner. They must also provide accurate information and respond to requests or queries with reasonable speed. The scope of the implied obligation of good faith and fair dealing depends upon the particular circumstances of the contract; however, in general it requires that both parties comply with the reasonable expectations of the other party. This means that the parties should make efforts to keep the transaction or contract in good working order, be fair and honest in dealing with the other party, and act in an equitable manner. Negotiations should be conducted openly and fairly, and any disputes should be reasonably resolved. Good faith and fair dealing are essential principles of law in the state of Washington.

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What are the duties of good faith and fair dealing in a business transaction?

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