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The existence of a contract; Performance by the plaintiff or some justification for nonperformance; Failure to perform the contract by the defendant; and, Resulting damages to the plaintiff.
In Arizona, a plaintiff may bring a claim against a defendant for breach of the implied covenant of fair dealing and good faith but must prove that the defendant had the express discretion for its actions and that the breach bore adversely on the plaintiff's expected benefits of the bargain.
? Implied Covenant of Good Faith and Fair Dealing HBC Associates, 411 Mass. 451, 471. This means ?that neither party shall do anything that will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract.? Id. 471-472.
In general, every contract contains an implied duty of good faith and fair dealing. This duty requires that neither party will do anything that will destroy or injure the right of the other party to receive the benefits of the contract.
The U.S. Supreme Court created the good faith exception to enforce the Fourth Amendment, which prohibits law enforcement from conducting unreasonable search and seizures. This exception provides protection for police officers with reasonable intentions, which were mistakes in their action.
That there has been a breach of the implied covenant of good faith and fair dealing in this case, the plaintiff must prove to you that the defendant, with no legitimate purpose: 1) acted with bad motives or intentions or engaged in deception or evasion in the performance of contract; and 2) by such conduct, denied the ...
Takeaway: Parties must not intentionally mislead each other. This case demonstrates that parties are considered to have breached the duty of good faith when they make misrepresentations that are active, intentional, and go well beyond innocent non-disclosure.
An example of this would be how an implied covenant can be associated with the following matters: Good faith in an employment setting; Marketable title to real estate, meaning no major defects with the title; The condition of habitability of a residential home, meaning that the home is suitable to live in; and.