Asked by Crystal Weaver on Jul 06, 2024
Verified
Which of the following is generally taken to mean neither party to a contract will do anything to prevent the other from obtaining the benefits that she has the right to expect from the parties' agreement or their contractual relationship?
A) Implied covenant of candor
B) Implied covenant of fairness
C) Implied covenant of good faith and fair dealing
D) Implied covenant of loyalty
Implied Covenant
An obligation between parties that is not explicitly stated in a contract but is presumed to exist to facilitate the contract's purpose and ensure fairness.
Good Faith
Conducting oneself with honesty, fairness, and sincerity in dealings or transactions, without the intention to deceive or defraud.
- Understand the doctrine of good faith and fair dealing in contractual relationships.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
C
Explanation :
The obligation to carry out a contract in good faith is usually called the implied covenant of good faith and fair dealing.It is a broad and flexible duty that is imposed by law rather than by the agreement of the parties.It is generally taken to mean that neither party to a contract will do anything to prevent the other from obtaining the benefits that she has the right to expect from the parties' agreement or their contractual relationship.
Learning Objectives
- Understand the doctrine of good faith and fair dealing in contractual relationships.