What is an implied covenant of good faith?

An implied covenant of good faith is a legal concept that exists in most states, including South Carolina, when it comes to contract law. It means that all parties involved in a contract must act honestly towards one another and must not do anything to frustrate the purpose of the contract. This does not mean that all parties must act in a way to benefit one another, but that they must not act in a way to damage the purpose of the contract. For example, if two parties enter into a contract for a sale of goods, one party must not do anything that would render it artificially more difficult for the other party to perform their obligations under the contract. For example, it would be a breach of the implied covenant of good faith if the seller of the goods was to raise the price of the goods shortly before they were to be delivered. The implied covenant of good faith is an important legal concept to understand when entering into any type of contract, as it can provide extra protection for both parties if their expectations from the agreement are not met. By understanding the implications of the implied covenant of good faith, both parties can be assured that their contractual rights will be respected by the other party.

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What is an implied covenant of good faith?

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