Definition - What does Bad Faith mean?
Bad faith is an individual's intent to deceive or harm someone in order to gain an advantage. Depending on the context, acting in bad faith may refer to several things: misleading someone, refusing to fulfill a contractual or legal obligation, or entering into an agreement without the intent or means to honor it.
Justipedia explains Bad Faith
The term has wide implications, but it is mostly used in breach of contract litigation. When one party misleads another, enters into an agreement with others without having the intent or resources to complete it, or refuses to fulfill its obligations, the party is said to have acted in bad faith. The term bad faith can be considered an antonym to another legal term: good faith.