Contracts
What is a 'good faith and fair dealing' obligation in Illinois contracts?
AA contractual obligation requiring parties to like each other
BAn implied duty requiring parties to not act in ways that destroy or injure the other's right to receive the benefits of the contract✓ Correct
CAn Illinois statute requiring all contracts to be reviewed for fairness
DA requirement that both parties negotiate in equal good faith before signing
Explanation
The implied covenant of good faith and fair dealing is recognized in Illinois contract law and requires that parties not take actions that, while technically permitted by the contract's literal terms, would unfairly deprive the other party of the benefits they reasonably expected. In real estate, examples might include a buyer delaying without cause to prevent the seller from making the deadline, or a landlord withholding consent unreasonably when consent cannot be unreasonably withheld.
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