Good Faith

Business, Legal & Accounting Glossary

Definition: Good Faith


Quick Summary of Good Faith


Good faith, or in Latin bona fide, is the mental and moral state of honesty, conviction as to the truth or falsehood of a proposition or body of opinion, or as to the rectitude or depravity of a line of conduct. This concept is important in law, especially equitable matters.

In contemporary English, “bona fides” is sometimes used as a synonym for credentials, background, or documentation of a person’s identity] “Show me your bona fides” can mean: Why should I trust you (your good faith in this matter)? Tell me who you are. In this sense, the phrase is sometimes used in job advertisements, and should not be confused with the bona fide occupational qualifications or the employer’s good faith effort, as described below.




What is the dictionary definition of Good Faith?

Dictionary Definition


n. honest intent to act without taking an unfair advantage over another person or to fulfill a promise to act, even when some legal technicality is not fulfilled. The term is applied to all kinds of transactions.

 


Full Definition of Good Faith


Good faith, or in Latin bona fide, is an individual’s belief that a social group has good goals, capabilities, principles, measures and integrity. One is said to be acting in good faith when his intentions and purported capabilities are consistent with faith that the group has greater efficiency and wisdom than its parts, including himself. An assumption of good faith is belief that another member intends to act in the best interests of the group and has the capability that he purports to do so.

In law, especially equitable matters, good faith is the mental and moral state of honesty, conviction as to the truth or falsehood of a proposition or body of opinion, or as to the rectitude or depravity of a line of conduct, even if the conviction is considered by the court to be unfounded.

In contemporary English, “bona fides” is sometimes used as a synonym for credentials, background, or documentation of a person’s identity. “Show me your bona fides” means: Prove to me that you act in the best interests of the group. In this sense, the phrase is sometimes used in job advertisements, and should not be confused with the bona fide occupational qualifications or the employer’s good faith effort, as described below.

Good Faith Effort

U.S. Federal and state government are required to look for disabled, female, minority, and veteran business enterprises when bidding public jobs. An employer’s good faith effort is used as an evaluation tool by the jurisdiction during the annual program review process to determine an employer’s level of commitment to the reduction goals of the CTR Law.


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Good Faith. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 26, 2021 https://payrollheaven.com/define/good-faith/.
Chicago Manual of Style (CMS):
Good Faith. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/good-faith/ (accessed: September 26, 2021).
American Psychological Association (APA):
Good Faith. PayrollHeaven.com. Retrieved September 26, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/good-faith/

Definition Sources


Definitions for Good Faith are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st May, 2020 | 4 Views.