Also known as: U.C.C. § 1-203 · UCC 1-203 · U.C.C. 1-203 · good faith · obligation of good faith
Written by attorneys · grounded in primary & secondary sources — see below
A statutory obligation requiring parties to contracts governed by the Uniform Commercial Code to perform and enforce their agreements in good faith. The obligation supplies a standard for evaluating conduct but does not by itself create an independent cause of action.
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Urban Logistics missed two installment payments on its mortgage with Ultimate Solutions. The lender declared the full balance due and began foreclosure proceedings. Because the lender acted on a legitimate default without any indication of improper motive, its acceleration decision satisfied the good faith standard and permitted the foreclosure to proceed.
Umbra Technologies received a deposition notice describing five specific topics. The company promptly conferred with the requesting party and designated two officers to testify on the listed matters. The designations reflected a good faith effort to supply information known or reasonably available to the organization.
Ugo Ucelli filed a derivative action against Ultimate Solutions. The board formed a committee of qualified directors that conducted an inquiry and concluded in good faith that continued litigation was not in the corporation's best interests. The court dismissed the suit on the basis of that determination.
Ulysses Usher asked his lawyer whether a proposed transaction would violate securities laws. The lawyer explained the legal consequences and helped the client structure the deal to comply with the law. The lawyer's conduct remained within the bounds of permissible assistance because it reflected a good faith effort to determine the law's application.
Ursula Upton, a journalist, received a grand jury subpoena seeking her confidential source. She appeared and answered questions after the prosecutor assured her the inquiry was conducted in good faith. The absence of any constitutional privilege required her to testify.
Uri Underwood defaulted on a home loan held by Upstream Petroleum. The lender proceeded with foreclosure while maintaining complete records and providing all required notices. Its actions throughout the process satisfied the obligation to act in good faith.
No. The section imposes an obligation of good faith in the performance and enforcement of contracts but does not authorize a separate claim for its breach standing alone.
A party may accelerate only when a default has occurred and the decision is made in good faith. Courts examine whether the acceleration was motivated by a legitimate concern rather than an improper purpose.
…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…
…of substantial performance of a contract of the character of the one under consideration depends in no small degree upon the good faith of the contractor. If the plaintiff had intended to, and had complied with the terms of the contract except as to minor omissions, due to inadvertence, then he might be allowed to recover…
…that, if the inevitable discovery doctrine is constitutionally permissible, it must include a threshold showing of police good faith. B The doctrine requiring courts to suppress evidence as the tainted "fruit" of unlawful governmental conduct had its genesis in Silverthorne Lumber Co. v. United States , 251 U. S.…
…of publication. See supra note 4. Each party, we think, assumes the risks of what might happen, protected only by the good faith of the other party. In other words, contract law seems here an ill fit for a promise of news source confidentiality. To impose a contract theory on this arrangement puts an unwarranted…
…from such a course, a long trail of ills, one of the direct consequences being a loss of confidence in the government and in the
The organization must confer in good faith about the matters for examination and designate persons who can testify about information known or reasonably available to the entity.
Dismissal is proper when a qualified group makes a good faith determination after a reasonable inquiry that maintaining the suit is not in the corporation's best interests.
A lawyer may not assist conduct the lawyer knows is criminal or fraudulent but may discuss legal consequences and help the client determine the law's meaning or application in good faith.
Yes. A reporter must appear and testify when the grand jury investigation is conducted in good faith. No constitutional privilege allows refusal to disclose sources under those circumstances.