Under Florida law, every contract contains an implied covenant of good faith and fair dealing. It exists in virtually all contractual relationships. The implied covenant of good faith and fair dealing is not an independent term within the contract, rather, it attaches to the performance of a specific contractual obligation. In order for a duty of good faith performance to exist, a plaintiff must establish a term of the contract the other party was obligated to perform and did not. Therefore, there can be no cause of action for a breach of the implied covenant absent an allegation that an express term of the contract has been breached.
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 West Palm Beach contracts lawyer will advise a plaintiff that a breach of an implied covenant of good faith and fair dealing is not an abstract and independent term of a contract, which may be asserted as a source of breach when all other terms have been performed pursuant to the contract requirements. Additionally, the parties to a contract are required by the implied covenant of good faith and fair dealing to exercise their discretion contractually given to them in a reasonable manner and not arbitrarily, capriciously, or in a manner inconsistent with the reasonable expectations of the parties.
To establish a breach of the implied covenant of good faith and fair dealing, a plaintiff must demonstrate a failure or refusal to discharge contractual responsibilities, prompted not by an honest mistake, bad judgment, or negligence, but instead by a conscious and deliberate act. As a result of the defendant's acts or failure to meet the contractual duties, it unfairly frustrates the agreed common purpose of the contract and disappoints the reasonable expectations of the plaintiff, thereby depriving the plaintiff of the benefits of the agreement. Moreover, under Florida law, the implied covenant of good faith and fair dealing is limited in two ways:
-
The claim must be accompanied by an allegation that an express term of the contact has been breached; and
The implied obligation of good faith cannot be used to vary the terms of an express contract.
A cause of action for breach of an implied covenant of good faith and fair dealing may have many complex issues. Therefore, you should consult with an experienced West Palm Beach contracts lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.
Blog for Breach of Implied Covenant of Good Faith & Fair Dealing
- The Purpose of an Implied Covenant of Good Faith and Fair Dealing
Description: West Palm Beach contracts lawyer | Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.
- Establish the Elements for Breach of Implied Covenant of Good Faith and Fair Dealing
Description: West Palm Beach contracts lawyer | Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.
Library for Breach of Implied Covenant of Good Faith & Fair Dealing:
- Establish the Elements for Breach of Implied Covenant of Good Faith and Fair Dealing
Description: West Palm Beach contracts lawyer | Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL. - The Purpose of an Implied Covenant of Good Faith and Fair Dealing
Description: West Palm Beach contracts lawyer | Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.
