Contracts
In Rhode Island, what is the significance of 'good faith and fair dealing' in contract performance?
AIt is an optional standard in real estate contracts
BBoth parties have an implied obligation to act in good faith and deal fairly with each other throughout contract performance✓ Correct
CIt only applies to mortgage contracts
DOnly brokers are subject to the good faith obligation
Explanation
Rhode Island (like all states) implies a covenant of good faith and fair dealing in contracts. Both parties must perform their obligations honestly and without interfering with the other's right to receive the benefit of the contract.
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