What is a breach of the implied covenant of good faith?

A breach of the implied covenant of good faith is a violation of the agreement between two parties even if that agreement was not explicitly stated. In contract law, the implied covenant of good faith is an obligation on the part of both parties to not act in bad faith or with malicious intent. In the context of contract law in Hawaii, the implied covenant of good faith requires parties to cooperate in the performance of the contract, and if one party fails to do so, it can be found to be in breach of their implied covenant of good faith. An example of a breach of the implied covenant of good faith could be a tenant refusing to make necessary repairs to the property they are renting. Under the implied covenant of good faith, the tenant has an obligation to maintain the property in the condition it started in, as that was part of the agreement between the landlord and the tenant. If the tenant fails to do so, it would constitute a breach of the implied covenant of good faith. Another example of a breach of the implied covenant of good faith could be if one party fails to disclose pertinent information to the other party, such as the condition of a home they are selling. If it is not disclosed that the foundation of the home is unstable, the seller may be in breach of their implied covenant of good faith. In Hawaii, if one party is found to have breached the implied covenant of good faith, they can be held liable for damages that the other party suffered as a result of the breach. This can include compensating the other party for the cost of repairs or additional expenses incurred due to the breach.

Related FAQs

What is the difference between a covenant and a contract?
What are the legal remedies for a breach of contract?
What are the types of contracts?
What is an anticipatory breach of contract?
What is an assignment of a contract?
What is the effect of a partial payment?
What is acceptance of a contract?
What is the doctrine of frustration in a contract?
What are the defenses to a breach of contract?
What is a joint venture agreement?

What is a breach of the implied covenant of good faith?

Related FAQs

Related Blog Posts