Also known as: fides servanda est · good faith · pacta sunt servanda
Written by attorneys · grounded in primary & secondary sources — see below
A foundational principle requiring parties to an agreement to keep their promises and deal honestly with one another.
Felix Franco missed two mortgage payments on his home. The lender reviewed the loan file and concluded the default was genuine with no prospect of cure. Exercising the acceleration clause, the lender declared the full balance due and initiated foreclosure. Because the decision rested on documented facts rather than an improper motive, the acceleration satisfied the requirement of keeping faith with the contractual terms.
Freya Freeman sued Fusion Power and noticed a Rule 30(b)(6) deposition listing five topics. Fusion Power's counsel conferred with Freeman's counsel about the scope and then designated two officers to testify on the listed matters. The officers prepared using information reasonably available to the company. Their good-faith effort to identify and produce knowledgeable witnesses fulfilled the duty to keep faith with the discovery rules.
Select any source to read its text and confirm it supports the definition.
Floyd Franklin, a shareholder of Freeman Engineering, sent a demand letter alleging mismanagement. The board formed a committee of qualified directors that conducted interviews and reviewed documents. The committee concluded in good faith that litigation would harm the company more than help it. The court dismissed the derivative suit because the board's determination rested on a reasonable inquiry and honest assessment of corporate interests.
Francois Fortier asked his lawyer whether a proposed transaction would violate securities laws. The lawyer explained the statutory text, relevant regulations, and possible enforcement positions. After the client decided to proceed with modifications that avoided clear violations, the lawyer assisted with the revised structure. The lawyer's willingness to discuss legal consequences while refusing to help criminal acts kept faith with professional obligations.
Felicia Fuentes, a journalist, received a grand jury subpoena for notes about a public official. She appeared and answered questions about non-confidential matters. Although she declined to reveal a source, the prosecutor's good-faith investigation into criminal conduct meant the First Amendment did not shield her from testifying. The court enforced the subpoena because the inquiry was not a pretext to harass the press.
Farid Farahani defaulted on a home loan. The servicer sent required notices, offered a loss-mitigation review, and conducted the foreclosure sale only after confirming compliance with every statutory step. Because the servicer acted throughout in good faith, the court rejected the borrower's claim that the process was unfair and upheld the sale.
The maxim requires parties to honor their promises and act honestly when carrying out agreements. It underpins the duty of good faith that prevents one side from taking unfair advantage after the other has relied on the deal.
No. The principle reaches any agreement or course of dealing in which one party has reasonably relied on another's word or conduct. Courts apply it to oral promises, modifications, and even pre-contractual negotiations when bad faith would undermine the bargain.
A mortgagee may accelerate only when the decision rests on a genuine default and not on an improper motive such as pressuring the borrower into a new loan. The requirement of good faith ensures the lender keeps faith with the original bargain rather than using the clause as a weapon.
A lawyer may discuss legal consequences and help a client test the validity of a proposed course of action, but may not assist conduct the lawyer knows is criminal or fraudulent. The distinction preserves the maxim's command to keep faith with both the client and the law.
No. The First Amendment does not create a reporter's privilege that would allow a journalist to withhold information from a good-faith grand jury investigation. The maxim requires the reporter to keep faith with the legal process once the inquiry is legitimate.
…arising from the reasonable expectation of the continuation of benefits attending the status of marriage entered into in good faith are not present in such a case." (P. 685.) In the absence of express contract, Vallera concluded, the woman is entitled to share in property jointly accumulated only "in the proportion…