Also known as: bona fide · good faith
Written by attorneys · grounded in primary & secondary sources — see below
An honest state of mind consisting in belief or purpose without fraudulent intent or malice. It requires faithfulness to duty and observance of reasonable standards of fair dealing.
Bharat Bhatia missed two mortgage payments on his home. The lender declared the full balance due under the acceleration clause. The court examined whether the lender acted with bona fides when accelerating without first offering a cure period.
Brittany Bell served a Rule 30(b)(6) notice on Bristol Steel describing five topics for examination. The company designated two officers and conferred with Bell about the scope. The court reviewed whether the parties had conferred in bona fides before the deposition.
Bianca Blanco filed a derivative suit against Baxter Dynamics directors. The board formed a committee that conducted an inquiry and concluded the suit was not in the corporation's best interests. The court assessed whether the committee acted with bona fides in reaching that determination.
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Bianca Baker asked her lawyer how to structure a transaction that might skirt securities rules. The lawyer discussed legal consequences and advised on a good-faith effort to test the law's application. The disciplinary board evaluated whether the lawyer had assisted in conduct lacking bona fides.
Bethany Boyd refused to reveal a source to a grand jury investigating public corruption. The prosecutor showed the investigation was conducted in bona fides. The court ordered her to testify because no constitutional privilege protected the refusal.
Brianna Burke defaulted on her home loan. The lender began foreclosure proceedings under the Uniform Act. The court checked whether the lender had complied with all requirements in bona fides throughout the process.
No. Bona fides requires honesty in belief or purpose and absence of fraudulent intent. A party may act in good faith even if later shown to have been mistaken, provided the belief was honest and the party observed reasonable standards of fair dealing.
No. Model Business Corporation Act section 7.44 requires that the determination be made in good faith after a reasonable inquiry. A court will not dismiss the suit if the process lacked bona fides or was not reasonably conducted.
No. Acceleration must be exercised in good faith. Some jurisdictions also require notice and a cure period. A court may deny foreclosure or limit the amount due if the lender acted without bona fides.
…was not to be found guilty of the offense "unless it is proved that the act which caused the death of the child was not done in good faith for the purpose only of preserving the life of the mother." A seemingly notable development in the English law was the case of Rex v. Bourne , [1939] 1 K. B. 687. This case apparently…