In Illinois, business agreements are subject to an implied covenant of good faith and fair dealing. The covenants of good faith and fair dealing are generally provisioned for in a well-drafted agreement. This means that a party to the agreement agrees to act in good faith and agrees to deal fairly with the other, and not cheat the other party of the benefit of the contractual bargain. The covenant of good faith and fair dealing gives a party discretion to perform or not perform, or requires the other party to perform, or refrain from performing, under certain conditions. Under this implied covenant, parties must act consistently with the parties’ reasonable expectations, exercise discretion, with proper motive, and not arbitrarily.
Without written agreements, enforcement of contractual bargains is difficult. By hiring our law firm, one of our corporate lawyers will draft an agreement whereby clients can ensure their interests are bargained for, negotiated for, and accurately represented by the business agreement. This allows for minimal misunderstandings and allows businesses to run efficiently, effectively.