What is the doctrine of good faith and fair dealing?

The doctrine of good faith and fair dealing is a legal principle that requires parties to a contract act honestly and fairly towards one another. This means that in a contractual relationship, the parties should not do anything to undermine the basic purpose of the contract. In Mississippi contract law, the doctrine of good faith and fair dealing is implied in every contract and, according to the Mississippi Supreme Court, "the implied covenant of good faith and fair dealing is a judicially-imposed limitation on the contractual freedom of the parties." The implied covenant of good faith and fair dealing protects the parties from behaviors that are fraudulent, oppressive, or unconscionable. For instance, a party to a contract cannot act in bad faith to frustrate or extinguish the other party’s rights under the agreement. In addition, a party cannot act in a manner that goes against the customary business practices associated with the contract. The doctrine of good faith and fair dealing also means that parties must not breach their agreements. If either party fails to fulfill their obligations under a contract, the other can bring a legal action for breach of contract. A party who successfully brings a breach of contract suit can be awarded damages from the other party. Overall, the doctrine of good faith and fair dealing is an important legal concept to understand in Mississippi contract law. It is meant to protect all parties to a contract from being taken advantage of, and it ensures honest and fair dealing between parties that enter into a contract.

Related FAQs

What is a material breach of contract?
What is a contract of indemnity?
What is the parol evidence rule and why is it important?
What is a breach of contract?
What is frustration of purpose?
What are the types of contracts?
What is a promissory estoppel?
What is a breach of the implied covenant of good faith?
What is a contract for services?
What is a joint venture agreement?

What is the doctrine of good faith and fair dealing?

Related FAQs

Related Blog Posts