Acting in Bad Faith, Breaching the Implied Covenant of Good Faith

It is common sense that you don’t expect the person you are entering into an agreement with you purposefully try to dupe you. The doctrine of the Implied Covenant of Good Faith and Fair Dealing states that just that. Here is the standard in New York.

“The implied covenant of good faith and fair dealing” embraces a pledge that neither party shall do anything which will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract” ABN AMRO Bank, N.V. v. MBIA Inc., 2011 N.Y. Slip Op 5542, 11-12 (2011), citing, Dalton v. Educational Testing Serv., 87 N.Y.2d 384, 389 (1995).


If you have any legal questions or need help with bad faith and contract disputes, please contact Attorney Scott Lanin at (212) 764-7250 x 201 or use the contact form in the right sidebar.

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