Glossary

Bad Faith

Intentional dishonesty or misleading someone by entering into an agreement without the intention or means to fulfill it.

Tips

There is an implied covenant of good faith in M&A transactions, even in non-binding agreements, such as a non-binding letter of intent (LOI). Good faith requires the parties to deal with one another honestly and fairly. Bad faith is unlikely to be specifically mentioned in the contract. Rather, it’s an implied duty in any commercial contract and doesn’t need to be specifically mentioned.

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now