— Also termed bona fides. Cf. BAD FAITH. — good-faith, adj.
“The phrase ‘good faith’ is used in a variety of contexts, and its meaning varies somewhat with the context. Good faith performance or enforcement of a contract emphasizes faithfulness to an agreed common purpose and consistency with the justified expectations of the other party; it excludes a variety of types of conduct characterized as involving ‘bad faith’ because they violate community standards of decency, fairness or reasonableness. The appropriate remedy for a breach of the duty of good faith also varies with the circumstances.” Restatement (Second) of Contracts § 205 cmt. a (1979).
“[G]ood faith is an elusive idea, taking on different meanings and emphases as we move from one context to another — whether the particular context is supplied by the type of legal system (e.g., common law, civilian, or hybrid), the type of contract (e.g., commercial or consumer), or the nature of the subject matter of the contract (e.g., insurance, employment, sale of goods, financial services, and so on).” Roger Brownsword et al., “Good Faith in Contract,” in Good Faith in Contract: Concept and Context 1, 3 (Roger Brownsword ed., 1999).
