Bad Faith Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Bad Faith, written in plain English, along with examples of how it is used.

What is Bad Faith?

(n) Bad Faith is the state of mind while doing an activity or action wherein such action is not done with a good and fair intention expected from a person of conscious mind. The term is antonym to ‘good faith’ which shows correct intention while doing an activity even though the end result was the contrary.

History and Meaning of Bad Faith

Bad faith is a concept that originated in the law of contracts and refers to dishonest or unfair dealing. It is a legal term that has been used to describe a wide range of behaviors, including deception, fraud, misrepresentation, and breach of trust. In the context of legal disputes, bad faith can arise when one party fails to act in good faith or engages in conduct that is intended to deceive or harm the other party.

Examples of Bad Faith

  1. A real estate agent who fails to disclose a known defect in a property to a buyer is acting in bad faith.
  2. An insurance company that wrongfully denies a valid claim is acting in bad faith.
  3. A party to a contract who intentionally breaches the agreement is acting in bad faith.
  4. A gossip columnist who publishes false information about a celebrity is acting in bad faith.

Legal Terms Similar to Bad Faith

  1. Fraud - Intentionally deceiving another person for personal gain.
  2. Negligence - Failure to exercise the care that a reasonable person would under similar circumstances.
  3. Breach of trust - Failing to fulfill obligations that arise from a position of trust and confidence.