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Tampa Business & Insurance Attorneys > Video FAQs > Business Litigation > What is a breach of the implied covenant?

What is a breach of the implied covenant?

Every contract in Florida has an implied covenant of good faith and fair dealing in it. That means even if it isn’t in explicit terms saying you need to act in good faith, Florida law says you need to. This means that any ambiguity in the contract, if the contract says you have to do X, Florida law says you have to do X in good faith. In other words, you can’t look for tiny little loopholes or a way to mess around with the other party. Doing so could constitute a breach of that contract.

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