The law considers actions that undermine the basic value of the contract to be in bad faith. The organization could sue you for breaking the “implied covenant of good faith and fair dealing.” An implied covenant is a basic, unwritten responsibility that underlies the transaction.
http://business-law.lawyers.com/business-litigation/fraud-misconception-good-faith-and-fair-dealing.html
Good Faith. Honesty; a sincere intention to deal fairly with others. Good faith is an abstract and comprehensive term that encompasses a sincere belief or motive without any malice or the desire to defraud others. It derives from the translation of the Latin term bona fide, and courts use the two terms interchangeably.
http://legal-dictionary.thefreedictionary.com/Good+Faith
The one duty that parties cannot waive in a Delaware limited liability company (LLC) agreement is the duty to act consistently with the implied contractual covenant of good faith and fair dealing.
http://apps.americanbar.org/buslaw/blt/content/2011/11/article-3-jowers-lazarus.shtml
Bay Center brought an action against Emery Bay PKI (PKI) for, among other things, breach of the implied covenant of good faith and fair dealing in the Emery Bay LLC Agreement. Bay Center and PKI formed Emery Bay to develop a condominium project.
http://apps.americanbar.org/buslaw/blt/content/2011/11/article-3-jowers-lazarus.shtml
The term good faith is used in many areas of the law but has special significance in Commercial Law. A good faith purchaser for value is protected by the Uniform Commercial Code, which every state has adopted.
http://legal-dictionary.thefreedictionary.com/Good+Faith
To prove a breach of the implied covenant of good faith and fair dealing under Delaware law, a plaintiff must allege: (1) implied contractual terms;(2) a breach of the implied terms; and (3) damages. Although that general standard is easily articulated, the circumstances in which terms may be implied are not clear. As former Chancellor Chandler observed, the exact contours of the implied covenant of good faith and fair dealing are not always easily discernable in the case law.
http://apps.americanbar.org/buslaw/blt/content/2011/11/article-3-jowers-lazarus.shtml
For a merchant, good faith has a higher standard, and means “honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade”. But, even with these statutory definitions, the meaning of the doctrine in the US and its exact scope is not black and white.
https://www.mayerbrown.com/files/Publication/92d74f21-c4e3-4d1d-86ac-77fa21b6c95c/Presentation/PublicationAttachment/65ac405d-db68-4d53-bdfa-8434e78cf627/Good_Faith_jul2013_corp-alert.pdf
Parties to a Contract Must Act in Good Faith. Basic contract law principles require parties to a contract to act in good faith. This requirement makes you responsible for more than just fulfilling the terms of the agreement. You can’t do anything that prevents the other party from receiving the full benefit of the contract.
http://business-law.lawyers.com/business-litigation/fraud-misconception-good-faith-and-fair-dealing.html
Implied Covenant of Good Faith and Fair Dealing. An implied obligation that assumes that the parties to a contract will act in good faith and deal fairly with one another without breaking their word, using shifty means to avoid obligations, or denying what the other party obviously understood. wex: COMMERCE. business law.
https://www.law.cornell.edu/wex/implied_covenant_of_good_faith_and_fair_dealing
Despite a wealth of case law, there is no established definition of what good faith requires under a German law contract – although this case law does give guidance on the legal consequences of good faith in certain situations.
https://www.mayerbrown.com/files/Publication/92d74f21-c4e3-4d1d-86ac-77fa21b6c95c/Presentation/PublicationAttachment/65ac405d-db68-4d53-bdfa-8434e78cf627/Good_Faith_jul2013_corp-alert.pdf
business law definition of good faith and fair dealing
In business law, good faith and fair dealing is an implied obligation that assumes that the parties to a contract will act in good faith and deal fairly with one another without breaking their word. In business law, good faith and fair dealing is an implied obligation that assumes that the parties to a contract will act in good faith and deal fairly with one another without breaking their word to avoid obligations, or denying what the other party obviously understood.