The covenant of good faith and fair dealing is an implied agreement in every contract that the parties will act honestly and fairly in fulfilling their contractual obligations and would not undermine the other side’s ability to receive the benefits of the contract.
Under Florida law “[e]very Florida contract contains an implied covenant of good faith and fair dealing that protects the parties’ reasonable expectations of honest conduct in their contractual obligations.” Avant Design Group, Inc. v. Aquastar Holdings LLC, 351 So. 3d 62, 71 (Fla. 3d DCA 2022).
However, there are two limitations on claims for breach of the covenant of good faith and fair dealing: “(1) where application of the covenant would contravene the express terms of the agreement; and (2) where there is no accompanying action for breach of an express term of the agreement.” Diageo Dominicana, S.R.L. v. United Brands, S.A., 314 So. 3d 295, 299 (Fla. 3d DCA 2020)...
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