The Influence of the Ethical Principle of Good Faith and Fair Dealing in the Formation and Execution of Civil Obligations

Abstract

The ethical principle of good faith and fair dealing, although relatively, implicitly, or explicitly recognized in the legal systems of most countries, has occasionally been neglected, making it necessary to examine its influence in the formation and execution of civil obligations. Accordingly, the aim of the present article is to analyze the influence of the ethical principle of good faith and fair dealing in the formation and execution of civil obligations. This study is descriptive-analytical and utilizes a library-based research method to explore the subject. The findings indicate that although good faith originates from an individual's intent and has a personal aspect, in practice—particularly in contracts—it is of great importance and assumes an objective dimension that can impact economic and social security. Therefore, its governance in the contractual process is essential. Good faith and fair dealing, as a binding and obligatory principle, entail commitments and duties for the parties throughout the formation, execution, and legal enforcement of contractual obligations. Today, this principle has gained significant importance and an increasingly influential role in contract law and transactions. The application of modern contract law theories—such as the duty to cooperate, the duty of honesty, and the duty of confidentiality, among many others that are all manifestations of good faith and fair dealing—will yield beneficial outcomes.