Under Section 205 of the Restatement (Second)of Contracts:
A) every contract imposes upon each party a duty of good faith and fair dealing in both performance and enforcement.
B) sales contracts impose a duty of good faith and fair dealing in performance, but enforcement is not mentioned.
C) the duty of good faith of parties to contracts is modified and made stricter than the duty imposed under the UCC.
D) the duty of good faith of parties to contracts is made more lenient than the duty imposed under the UCC.

Question

Quizplus · Accepted Answer

Section 205 of the Restatement (Second) of Contracts states that every contract imposes upon each party a duty of good faith and fair dealing in both performance and enforcement. This duty is not limited to sales contracts, as stated in option B, and is not modified or made stricter or more lenient than the duty imposed under the UCC, as stated in options C and D.