What is an implied covenant of good faith?

An implied covenant of good faith is a legal concept in contract law which holds that parties to a contract must act in good faith when performing contractual obligations. This means that parties must not take any unfair advantage of each other or deny each other of the benefits of the contract. This concept is particularly important in Florida contract law since it is necessary to ensure that parties are acting in accordance with the spirit of the contract. The implied covenant of good faith applies to all aspects of contract performance. This means that both parties must act honestly and in good faith when entering into and performing the contract. For example, a party to a contract cannot withhold information or use something to their advantage that has not been specifically outlined in the contract. Additionally, a party cannot use their power to enforce the contract in an unfair manner. The implied covenant of good faith is an important part of contract law which helps to ensure that contracts are performed properly and in an equitable way. Without it, there is a risk that one party may take advantage of the other or deny them of the benefits of the contract. In Florida, this implied covenant of good faith is considered a matter of public policy and is strictly enforced by the courts.

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What is an implied covenant of good faith?

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