bad faith

Bad faith refers to dishonesty or fraud in a transaction . Depending on the exact setting, bad faith may mean a dishonest belief or purpose, untrustworthy performance of duties, neglect of fair dealing standards, or a fraudulent intent. It is often related to a breach of the obligation inherent in all contracts to deal with the other parties in good faith and with fair dealing.

[Last reviewed in June of 2022 by the Wex Definitions Team ]

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