Good Faith –How Good Is It, Really!!

What is good faith?

Most contractual agreements include express clauses or an implied intention to negotiate or act in good faith. This term 'good faith' is derived from the doctrine known as the doctrine of good faith and fair dealing. It is a general presumption that contracting parties will in their dealings with each other as per that contract act honestly, fairly and in good faith so as not to hold back the rights of either party to enjoy the benefits of the contract.

General Usage

While good faith has no real legal definition in Indian law, English law has evolved a number of interpretations of good faith. Until recently under English Law there was no concept of doctrine of good faith. The principle was used to solve problems as and when they arose.