Also known as: bona fides · bona fide · good faith
Written by attorneys · grounded in primary & secondary sources — see below
A standard of conduct requiring honesty, fairness, and the absence of any intent to defraud or deceive in legal transactions and proceedings.
Benjamin Brooks defaulted on two mortgage installments owed to Bayside Shipping. The lender declared the full balance due under the acceleration clause and initiated foreclosure. Brooks challenged the action, claiming the lender acted without a good-faith basis because it refused to accept a cure payment offered within the notice period. The court examined whether the acceleration complied with the good-faith requirement before allowing foreclosure to proceed.
Bruce Baldwin served a Rule 30(b)(6) notice on Bright Path Foods describing eight specific topics for examination. The company designated two officers but failed to confer with Baldwin about the scope before the deposition date. Baldwin moved to compel additional designations, arguing the lack of a good-faith conference prevented proper preparation. The court ordered the parties to meet and confer before rescheduling.
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Beatrice Brown filed a derivative action against Boreal Energy alleging self-dealing by two directors. The board formed a committee of qualified directors that conducted an inquiry and concluded the suit was not in the corporation's best interests. The corporation moved to dismiss under the statute. The court reviewed whether the committee acted in good faith after a reasonable inquiry before granting dismissal.
Bobby Brady asked his lawyer whether a proposed business structure would violate federal tax rules. The lawyer explained the potential criminal consequences and then assisted Brady in drafting a request for a private letter ruling from the IRS. Brady later faced an enforcement action but argued the lawyer had only helped pursue a good-faith determination of the law's application. The disciplinary board found no violation of the counseling rule.
Brenda Booth, a journalist, refused to identify a confidential source when called before a federal grand jury investigating public corruption. She asserted a First Amendment privilege. The government showed the investigation was conducted in good faith and sought only relevant testimony. The court ordered compliance, holding that good-faith grand jury proceedings do not impermissibly burden press freedom.
Bei Bai, a homeowner, defaulted on a mortgage held by Blackwood Technologies. The lender began nonjudicial foreclosure but skipped required notices and failed to respond to Bai's cure attempts. Bai sued to enjoin the sale, alleging the lender violated its duty to act in good faith throughout the process. The court halted the foreclosure pending a showing of good-faith compliance with statutory requirements.
Yes. The mortgagee must exercise the acceleration right in good faith. Some jurisdictions also require notice and an opportunity to cure before acceleration becomes effective.
The organization must confer in good faith with the noticing party about the matters for examination and then designate one or more persons to testify on its behalf about information known or reasonably available to the entity.
A court shall dismiss the proceeding if a specified group of directors or others determines in good faith, after a reasonable inquiry, that maintaining the suit is not in the corporation's best interests.
…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…