Duty of Good Faith


Definition of Duty of Good Faith

Duty of good faith is a principle that requires all officers, including directors of a company, to make decisions as fiduciaries. Some violations of duty of good faith may also be categorized under duty of loyalty.



Duty of Good Faith Explained

Violation of duty of good faith may include intentionally violating or going against the law, intentionally committing acts that may damage the corporation directly or indirectly, or not performing the usual duties.