What is an implied covenant of good faith?

An implied covenant of good faith is an unwritten rule between two parties in a contract. This rule is not written out in the contract itself, but is instead implied by the actions and words of the two parties. In Washington, an implied covenant of good faith means that the two parties in a contract are expected to act in good faith when dealing with each other. This means that they are expected to be honest and trustworthy in their dealings with each other. The covenant also requires that neither party will try to take advantage of the other or use the contract to their advantage without providing fair benefit to the other party. It is important to note that an implied covenant of good faith is a basic agreement between two parties that should be followed even without being written out explicitly in the contract. This is because the implied covenant of good faith helps ensure fairness and trust in any contract situation.

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What is an implied covenant of good faith?

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