What is an implied covenant of good faith?

An implied covenant of good faith is a legal concept that is often seen in contracts in Nebraska and other places. This is an unwritten agreement between parties to a contract, and it states that each party will act honorably and fairly during the contract’s duration. This means that each party must act in good faith when it comes to matters of the agreement, such as fulfilling promises they made in the contract, and not doing anything that would be detrimental to the other party. The implied covenant of good faith is used to ensure that contracts are followed and upheld properly. In contract law, the implied covenant of good faith typically arises when one party to the contract breaches the contract or acts without the consent of the other party. It could also be seen as a concept of fairness that should exist between two parties in a contract. Essentially, the implied covenant of good faith places an obligation on both parties to act in an honorable and fair manner towards each other. As such, if one party fails to live up to their end of the bargain, they may be found liable for breach of the implied covenant of good faith.

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What is an implied covenant of good faith?

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