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Article: Good Faith
- Article from:
- West's Encyclopedia of American Law
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GOOD FAITH
Honesty; a sincere intention to deal fairly with others.
Good faith
is an abstract and comprehensive term that encompasses a sincere belief or motive without any malice or the desire to defraud others. It derives from the translation of the Latin term
bona fide
, and courts use the two terms interchangeably.
The term
good faith
is used in many areas of the law but has special significance in commercial law. A good faith purchaser for value is protected by the uniform commercial code, which every state has adopted. Under sections 1-201(9) and 2-403 of the code, a merchant may keep possession of goods that were bought from a seller who did not have title to the goods, if the ...