Duty of Good Faith, Prevention, & Hinderance

Question 1

Duty of Good Faith

Answer 1

• Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.

Bad faith is:
1. Evasion of the spirit of bargain
2. Lack of diligence and slacking off
3. Willful rendering of imperfect performance
4. Abuse of a power to specify terms, & interference or failure to cooperate in the party’s performance

Question 2

UCC good faith

Answer 2

“good faith” means being honest and fair when doing business. It involves acting truthfully and following common business practices that are generally accepted as fair and reasonable, unless stated otherwise in a specific law or rule
- every contract imposes obligation of good faith