FUNCTION OF GOOD FAITH IN CONTRACT LAW

Good faith in a total categorization of the term, has classified to protective and obligatory. The obligatory aspect of good faith relates to contract law that implies correct behaviour, honesty and respect to others trust and interest. In this conception of the term, good faith implies action or disaction from the parties as a behavioural rule. The morality of the good faith denotes to the fact that this term has the capability to implement different roles in different stages of contract. This roles conventionally has the titles such as restricting and completing the rights and obligations of the parties, balancing the contract, interpretative the contract and also playing role as a foundation to other rules and principles.