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

A breach of the implied covenant of good faith is when one party does something that goes against the spirit of the contract and unreasonably deprives the other party of what was agreed to in the contract. In Michigan, this covenant is implied into all contracts. This means that although it is not explicitly written into the contract, it is still implied and must be followed. For example, a breach of the implied covenant of good faith might occur when one party does something that makes it impossible for the other party to get the benefits of the contract. This might be if one party refuses to provide the agreed services or fails to take specific steps that have been listed in the agreement. Another example is if a party places an excessive burden on the other party in the performance of their duties. This could include delaying payments or withholding information that is necessary for them to do their job. In Michigan, if a breach of the implied covenant of good faith is suspected, both parties to the contract can seek legal advice from a lawyer. Depending on the details of the case, the lawyer may advise the party to start the legal process of restoring their contractual rights. This could involve seeking damages or an injunction to stop the other party from continuing to breach the covenant.

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

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