What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?
A)Providing adequate remedial measures to injured parties
B)Punishing the breaching parties in a contract
C)Encouraging litigation regarding breach of contracts
D)Encouraging ethical behavior in contracts

Question

What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?
A)Providing adequate remedial measures to injured parties
B)Punishing the breaching parties in a contract
C)Encouraging litigation regarding breach of contracts
D)Encouraging ethical behavior in contracts

Quizplus · Accepted Answer

This obligation to carry out a contract in good faith is usually called the implied covenant of good faith and fair dealing.The law's purpose in imposing such a term in contracts is to prevent abuses of power and encourage ethical behavior.

What Is the Law's Main Purpose in Imposing the Implied