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Traders & General Insur- ance Co.,20 the California Supreme Court recognized that breach of the implied covenant of good faith and fair dealing in insurance contracts could constitute a tort.
One type of breach which the courts have recognized as being both a breach of contract and a tort is the breach of the implied duty of good faith and fair dealing.
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.
Breach of contract is not an equitable remedy. If one has a breach of contract claim, then you cannot typically file an accompanying promissory estoppel claim. Specifically, promissory estoppel is not available when an unambiguous contract exists that covers the issue for which damages are sought.
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.
A duty to act in good faith promotes honesty and fair dealing between parties of commercial contracts. However, the parties may choose to either exclude or define the duty to act in good faith. The parties may also draft carefully to incorporate the doctrine of good faith in contracts.
There cannot be a written contract, for there to be promissory estoppel. Although you can sue for both, ultimately, a Plaintiff in a court case will have to choose between estoppel or breach of contract if there is a written agreement.
An implied obligation that assumes that the parties to a contract will act in good faith and deal fairly with one another without breaking their word, using shifty means to avoid obligations, or denying what the other party obviously understood.
A party to a contract breaches the implied covenant of good faith and fair dealing by interfering with or failing to cooperate with the plaintiff in the performance of the contract.
An agreement made by promissory estoppel will typically have the same binding effects on parties that a valid contract would. If a party breaches an obligation created by promissory estoppel, a court can choose to assign either reliance damages or expectation damages.