Implied Covenant of Good Faith and Fair Dealing in Mississippi

All contracts carry what is known as “an implied covenant of good faith and fair dealing.  Good faith is described as “the faithfulness of an agreed purpose between two parties, a purpose which is consistent with justified expectations of the other party. The breach of good faith is bad faith characterized by some conduct which violates standards of decency, fairness or reasonableness”. Restatement (Second) of Contracts Sec. 205, 100 (1979).

If one party breaches the implied duty of good faith, the court may impose a remedy against the breaching party.  What remedy is ordered depends entirely on the circumstances.

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