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

A breach of the implied covenant of good faith is a legal concept that refers to when one or more parties involved in a contract violate the trust that is expected of them. Under contract law in West Virginia, the implied covenant of good faith generally requires all parties to the contract to act in a manner that doesn’t harm the other parties or the contract’s purpose. A breach of the implied covenant of good faith can occur when a party to a contract excludes, withholds, or fails to provide certain information or actions that are necessary to the contract. This breach of the implied covenant of good faith can occur even when neither party has intentionally violated their agreement. For example, if one party to a contract fails to provide necessary materials or information required for the completion of the contract, or acts to prevent the contract’s purpose, it could be considered a breach of the implied covenant of good faith. Also, a breach of the implied covenant of good faith can occur if a party to a contract fails to act in a manner that is reasonable or necessary to the performance of the contract. This type of breach could occur if a party fails to respond in a timely manner to requests or notices, or fails to prevent acts that could harm the other party or the contract’s purpose. A breach of the implied covenant of good faith can result in both the breaching party and the non-breaching party experiencing damages or losses. The non-breaching party may be able to seek monetary damages for any losses or other legal remedies they may experience due to the breach.

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

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