The Duty of Good Faith and Fair Dealing - Feb. 13

Question 1

What is the duty of good faith and fair dealing? (R)

Answer 1

Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement. (205)

Question 2

How does the UCC define good faith? (DeLong)

Answer 2

The Uniform Commercial Code defines good faith as “honesty in fact and the observance of commercial reasonableness,” which will serve as a working definition for purposes of contract law. (249)

Question 3

What is opportunism? (DeLong)

Answer 3

“Opportunism” refers to a contract party’s use of a contractual power to take advantage of a counter-party’s vulnerability in order to gain an unintended benefit at the other party’s expense. (250)