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Home > Business Law > Good Faith In Business Dealings

The Duty of Good Faith in Illinois Business Dealings

Many business relationships and contracts are governed not just by terms that are made explicit, but also by implicit duties that all parties are expected to uphold. One such duty that governs Illinois contracts and business dealings is the duty of good faith and fair dealing. The obligation to act in “good faith” may seem ambiguous. In fact, whether or not parties have performed their duties in good faith has been a subject of disagreement in a great many lawsuits to enforce or nullify contracts.

Dedicated and professional Chicago contract litigation attorneys

The seasoned Hoffman Estates business attorneys at Pluymert, MacDonald, Hargrove & Lee have decades of experience in contract litigation and can help you determine whether the duty of good faith has been breached in your case. Our knowledgeable and professional Chicago business litigators can assist in ensuring that your rights are upheld under an Illinois contract. Contact us today for a consultation on your case.

What constitutes “good faith” in Illinois?

The duty of good faith can be defined, in essence, as the duty to cooperate with the other party to a contract in such a way that each obtains the benefit of the bargain as it is laid out in the contract. Parties are expected to behave fairly and honestly and to perform their contractual duties consistent with the other party’s reasonable expectations. When parties willfully or negligently fail to perform their end of the bargain or interfere with the other party’s ability to perform their duties under the contract, they may be vulnerable to a lawsuit based on their bad faith in performing their contractual duties.

For example, let’s say you’ve purchased an insurance policy for your Des Plaines business. A customer is injured while on the business premises in an accident of the sort covered by your policy, and you file a claim based on the customer’s injuries. The insurer rejects your claim without explanation. When you attempt to receive more information about why your claim has been denied, you are unable to reach a claims representative, nor do you receive acknowledgement of your written correspondence. When you finally do reach a representative of the insurance company many months later, they notify you that your time to appeal the denial of claim has passed. In this case, the insurer’s initial denial of the claim, seemingly without justification, as well as their interference with your ability to appeal the denial by ignoring your attempts to communicate, could entitle you to compensation through a claim based on bad faith.

Legal help when parties fail to perform their duties under a contract

Determining whether parties to a contract have upheld the duty of good faith requires a careful analysis of the circumstances under which a contract was formed, details about the parties’ performance, and knowledge of the operating standards of the industry. Claims based on a breach of good faith should be handled by skilled contract attorneys such as the Chicagoland business litigators at Pluymert, MacDonald, Hargrove & Lee. You can rest assured that your breach of contract claim will be handled with the attention, dedication, and professionalism that it deserves. Contact our Hoffman Estates offices today for a consultation on your case.

Bring Your Good Faith Business Issue to Our Experienced Chicago Business Lawyers

For assistance with an Illinois business law question or dispute, contact the Chicago business law attorneys at Pluymert, MacDonald, Hargrove & Lee for a consultation, in Hoffman Estates at 847-310-0025, or in Des Plaines at 847-298-5030.

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