What is an implied covenant of good faith?

An implied covenant of good faith is an unwritten promise between two parties in a contract in New Hampshire. This promise requires both parties to act in good faith and honestly when it comes to the terms of the contract. This means that both parties must perform their obligations in a fair manner, and not try to take advantage of each other or act in bad faith. The implied covenant of good faith applies to all contracts, and means that neither party should act in a way that hinders the other from performing their obligations under the contract. There may be other implied terms depending on the type of contract and the situation. This includes the right to expect that the other party will perform its obligations in a timely and professional manner. The implied covenant of good faith also means that both parties should act in a way that keeps the spirit of the contract alive, and should not take actions that are contrary to the spirit of the contract. This prevents one party from trying to use the contract as an unfair advantage over the other. In New Hampshire, the implied covenant of good faith has been upheld by the courts. This means that if one party fails to act in accordance with the terms of the contract or the spirit of the contract, the other party may have a legal recourse. Therefore, it is important to be aware of this concept when making contracts in New Hampshire.

Related FAQs

What is a mutual rescission of a contract?
What is the effect of a partial payment?
What is the implied covenant of quiet enjoyment?
What is a unilateral contract?
What is the principle of non-derogation of contracts?
What is a joint venture agreement?
What is the Statute of Limitations?
What is a third-party guarantor?
What is a contract of indemnification?
What is an indemnity clause?

What is an implied covenant of good faith?

Related FAQs

Related Blog Posts