[NEED LEGAL HELP?] Call our 24/7 Helpline: 1-866-723-4855

Good Faith

Definition - What does Good Faith mean?

Good faith means an intention to deal with others in a manner that is honest, fair and with integrity. Good faith is the opposite of taking advantage of, cheating or swindling others. The term "good faith" is used in a variety of legal areas. Wherever this term is used, it is in reference to behavior that is moral, ethical and trustworthy.

Justipedia explains Good Faith

Legally speaking, there are many times when a person could deceive or lie to another person in order to get him or her to believe something that isn't true, or to get him or her to buy something that he or she otherwise wouldn't buy. For example, a used car salesman may know that there is a defect in one of the cars that he sells. So, if a person buys the car in "good faith", believing the salesman when he says that the car is in perfect order, this could present a legal issue. Another area of law where the term good faith is used is in mortgage loans. Lenders are required to provide "good faith estimates" to borrowers upon application for a loan. These estimates are supposed to be honest and trustworthy estimates of the total cost of the loan.

Connect with us

Justipedia on Linkedin
Justipedia on Linkedin
"Justipedia" on Twitter

Sign up for Justipedia's Free Newsletter!