← All Terms
Contract Law

Bad Faith

/ bad fayth /

Definition

Dishonesty or intentional breach of known duty in a transaction.

Used in Context

“Insurance company bad faith in denying a valid claim can result in punitive damages.”

Etymology
Old English: baed, bad
Learn a new legal term every day
Lex gives you one legal term daily with flashcards, quizzes, and essays — completely free.
Start Learning Free →
← At-Will Employment Bankruptcy →