§ 37-2-3 - Supplemental general principles of law – Obligation of good faith.
SECTION 37-2-3
§ 37-2-3 Supplemental general principlesof law – Obligation of good faith. – (a) Unless displaced by the particular provisions of this chapter, theprinciples of law and equity, including the Uniform Commercial Code, Title 6A,the law merchant, and the law of contracts, including, but not limited to,agency, fraud, misrepresentation, duress, coercion, mistake, and bankruptcy,shall supplement these provisions.
(b) Every contract or duty under this chapter shall imposeupon both parts the obligation of good faith in its performance and/orenforcement. "Good faith" shall mean honesty in fact in the conduct ortransaction concerned and the observance of reasonable commercial standards offair dealing.