Law Commons^™

Reluctance And Remorse: The Covenant Of Good Faith And Fair Dealing With American Employment Law Good Faith And Fair Dealing In The Individual Employment Relationship, James J. Brudney

Faculty Scholarship

The covenant of good faith and fair dealing ("the covenant" or "Good Faith") is now an accepted feature of contractual relations in the United States. Essentially undeveloped until the 1960s, the obligation to act in good faith during contract performance and enforcement gained traction once it was written into the Uniform Commercial Code (UCC) and adopted by state legislatures. The covenant achieved broader recognition when included in 1981 as a new section in the Restatement (Second) of Contracts ("Restatement"). In the employment setting, however, the covenant has not fared nearly so well. The majority of states have declined to apply …