good faith


good faith
Good faith is an intangible and abstract quality with no technical meaning or statutory definition, and it encompasses, among other things, an honest belief, the absence of malice and the absence of design to defraud or to seek an unconscionable advantage, and an individual's personal good faith is concept of his own mind and inner spirit and, therefore, may not conclusively be determined by his protestations alone. Doyle v. Gordon, 158 N.Y.S.2d 248, 259, 260.
Honesty of intention, and freedom from knowledge of circumstances which ought to put the holder upon inquiry. An honest intention to abstain from taking any unconscientious advantage of another, even through technicalities of law, together with absence of all information, notice, or benefit or belief of facts which render transaction unconscientious. In common usage this term is ordinarily used to describe that state of mind denoting honesty of purpose, freedom from intention to defraud, and, generally speaking, means being faithful to one's duty or obligation. Efron v. Kalmanovitz, 249 Cal.App. 187, 57 Cal.Rptr. 248, 251.
Compare bad faith.
Bankruptcy law.
"Good faith" as used in statute requiring debtor to propose Chapter 13 plan in good faith has a meaning consisting of two elements: honesty of purpose and full and complete disclosure of the financial facts of the debtor. Matter of Harper, Bkrtcy.Ga., 11 B.R. 395, 396.
Commercial law.
Honesty in fact in the conduct or transaction concerned. U.C.C. No. 1-201(19). In the case of a merchant, honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. U.C.C. No. 2-103(lXb).
Insurance law.
"Good faith" required of a liability insurer in determining whether to accept settlement within policy limits implies honesty, fair dealing and full revelation; while "bad faith" implies dishonesty, fraud and concealment. Davy v. Public Nat. Ins. Co., 181 C.A.2d 387, 5 Cal.Rptr. 488, 492

Black's law dictionary. . 1990.

Look at other dictionaries:

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  • Good faith — Good faith, or in Latin bona fide , is the mental and moral state of honesty, conviction as to the truth or falsehood of a proposition or body of opinion, or as to the rectitude or depravity of a line of conduct, even if the conviction is… …   Wikipedia

  • Good Faith — • A phrase employed to designate the mental and moral state of honest, even if objectively unfounded, conviction as to the truth or falsehood of a proposition or body of opinion, or as to the rectitude or depravity of a line of conduct Catholic… …   Catholic encyclopedia

  • good faith — is an intangible and abstract quality with no technical meaning or statutory definition, and it encompasses, among other things, an honest belief, the absence of malice and the absence of design to defraud or to seek an unconscionable advantage,… …   Black's law dictionary

  • good faith — ➔ faith * * * good faith UK US noun [U] ► a way of behaving that is honest: »Buyers have no right to keep a stolen car once it has been identified as stolen, even if it was bought in good faith. → Compare BAD FAITH(Cf. ↑ …   Financial and business terms

  • good faith — n [U] when a person, country etc intends to be honest and sincere and does not intend to deceive anyone in good faith ▪ The report claimed that the company had acted in good faith . sign/show/gesture etc of good faith ▪ A ceasefire was declared… …   Dictionary of contemporary English

  • good faith — noun uncount the intention of behaving in an honest and sincere way: in good faith: I borrowed the money in good faith, but now I can t pay it back …   Usage of the words and phrases in modern English

  • good faith — good′ faith′ n. accordance with standards of honesty, trust, sincerity, etc.: to act in good faith[/ex] • Etymology: 1890–95 …   From formal English to slang

  • good faith — n. absence of malice or any intention to deceive; good intentions; sincerity …   English World dictionary

  • good faith — ► NOUN ▪ honesty or sincerity of intention …   English terms dictionary