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Letter B
contracts

Bad Faith

Dishonesty or fraud in a transaction; a willful failure to respond to plain demands or a refusal to fulfill contractual duties.

Encyclopedia entry: Bad Faith

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bad faith

Bad faith refers to dishonesty or fraud in a transaction . Depending on the exact setting, bad faith may mean a dishonest belief or purpose, untrustworthy performance of duties, neglect of fair dealing standards, or a fraudulent intent. It is often related to a breach of the obligation inherent in all contracts to deal with the other parties in good faith and with fair dealing.

[Last reviewed in June of 2022 by the Wex Definitions Team
]

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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).

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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.