What is the doctrine of good faith and fair dealing?

The doctrine of good faith and fair dealing is a legal principle that applies to contracts in the state of Hawaii. It means that when a contract is formed, both parties must act in a reasonable and honest way to fulfill their obligations under the contract. This means that both parties must act in good faith and not take advantage of each other. For example, if an employer and an employee enter into an employment agreement, they both have a mutual duty to work in good faith to make sure the terms of the agreement are fulfilled. This means the employer should not demand unreasonable tasks and the employee should not try to defraud the employer. The doctrine of good faith and fair dealing is an implied part of every contract in Hawaii and it is the duty of the courts to interpret and enforce this principle. Any breach of the duty of good faith and fair dealing is a breach of contract and could result in legal action. The doctrine of good faith and fair dealing applies to all types of contracts in Hawaii. Whether it involves a business agreement between two companies, a real estate transaction, or an employment agreement, any contract must be made in good faith and with the intention to fairly fulfill the obligations of the contract. Violation of the good faith and fair dealing principle can lead to serious legal consequences.

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What is the doctrine of good faith and fair dealing?

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