Duty of Good Faith

A party’s obligation to act in good faith during negotiations and even in the performance of his obligations are fundamental to the law of contracts.

Section 12 (a) of the Contracts Law stipulates that in negotiations leading up to the conclusion of a contract, a person must act in an acceptable manner and good faith.

Section 39 of the Contracts Act provides that in the existence of a liability arising from a contract, one must act in an acceptable manner and good faith, And the same is true of the use of the right arising from the contract.

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