The modern concept of good faith emerged from within the practices of the medieval principles of the Law Merchant.

Question

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The concept of good faith has always involved two basic elements: (1) honesty in fact, and (2) conforming to accepted commercial practices of fairness. These two sides of good faith, however, were not always used in tandem in all situations. Thus, originally, when the Uniform Commercial Code was first codified, the two prong test of honesty and commercial fairness was restricted to a few areas.

The Modern Concept of Good Faith Emerged from Within the Practices