This lesson considers probably the most common type of implied term, that of good faith. At common law, courts often supply a term requiring the parties to exercise "good faith" or "good faith and fair dealing". Moreover, for the sale of goods, the UCC provides that every contract is subject to good faith requirements, which cannot be disclaimed by agreement.
On completion of the lesson, the student will be able to:
1. Define good faith.
2. Give examples of when good faith is required in common law contracts.
3. Distinguish between the two elements of good faith in the UCC.