A covenant of good faith and fair dealing is implied in contracts where the parties have a special relationship that involves a fiduciary duty.

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A covenant of good faith and fair dealing is commonly implied in contracts where the parties have a special relationship of trust, such as a fiduciary duty. This means that both parties are expected to act in good faith and deal fairly with each other throughout the course of their contractual relationship. Courts may enforce this implied covenant to prevent one party from unfairly exploiting the other or breaching the spirit of the agreement.

A Covenant of Good Faith and Fair Dealing Is Implied