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A duty of good faith is implied in contract performance.Group of answer choicesfalsetrue

Question

A duty of good faith is implied in contract performance.

Group of answer choices

  • false
  • true
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Solution

Answer: True

In contract law, the duty of good faith is often implied in the performance and enforcement of contracts. This means that parties to a contract are not only expected to fulfill their obligations as stated but must also do so honestly, fairly, and sincerely without any intention to deceive or undermine the purpose of the agreement. The obligation to perform in good faith helps promote trust and cooperation between parties, reducing the risk of conflict and facilitating the contractual relationship. In many jurisdictions, this principle is recognized in both common law and statutory provisions, emphasizing that good faith is essential for the integrity of contractual dealings. Therefore, the correct choice in this context is "true."

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