Legal Definitions - good faith

Good faith is a term used to describe honest and fair dealing. It can mean different things depending on the situation, but it generally involves acting with integrity and without any intention to deceive or harm others.

For example, if you are a salesperson, acting in good faith means being honest with your customers about the products you are selling. You should not make false claims or misrepresent the products in any way. If you are a trustee, acting in good faith means managing the trust assets with care and making decisions that are in the best interests of the beneficiaries.

Good faith is often required in legal and business contexts. For instance, in a contract, both parties are expected to act in good faith and fulfill their obligations honestly and fairly. If one party breaches this duty of good faith, they may be held liable for any damages that result.

On the other hand, acting in bad faith means intentionally deceiving or harming others. This is considered a more serious offense than simply being negligent or careless. For example, if a company knowingly sells a defective product and tries to cover it up, they are acting in bad faith and may be subject tolegal action.