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The Purpose of an Implied Covenant of Good Faith and Fair Dealing

Under Florida law, a breach of the implied covenant of good faith and fair dealing is not an independent cause of action, instead it attaches to the performance of a specific contractual obligation. Every contract includes an implied covenant which requires the parties to follow the standards of good faith and fair dealing. The doctrine of implied covenants of good faith and fair dealing is a "gap filling" default rule, which is usually raised by a party when an issue is not resolved by the express terms of the covenant. The purpose of the implied covenant is to protect the parties' reasonable contractual expectations.

Under Florida law, the "implied covenant of good faith and fair dealing" provides that one party cannot capriciously exercise discretion afforded to him or her under the contract so as to thwart the contracting parties' reasonable expectations. Accordingly, it may be raised when one party has more power to make a discretionary decision to further its own interests. Additionally, an implied covenant may be asserted by a party to prevent another party from hindering, obstructing, or delaying the performance of a duty under the contract. However, an implied covenant of good faith and fair dealing cannot override an express contractual term.

A plaintiff asserting a claim for breach of an implied covenant of good faith and fair dealing should consult with a West Palm Beach contracts lawyer. A cause of action for breach of an implied covenant of good faith and fair dealing may have many complex issues. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.




 All material contained in this site is for informational purposes only and is not meant to take the place of a licensed lawyer. Attempting to use this material to help yourself may result in irreparable harm to your case. Please consult a License Florida lawyer for help. Examples including case law, rules of procedure and satutory law are for demonstrative purposes and may not be Florida Specific. No attorney client relationship is formed unless we accept your case and you sign a contract.
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