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CHAPTER 3 The nature of the duty of the utmost good faith

Good Faith and Insurance Contracts

Page 41 CHAPTER 3 The nature of the duty of the utmost good faith Good faith and a structured duty 3.01 Good faith is an important part of every contractual relationship. The burden imposed on the parties to be concerned with good faith will vary according to the nature of the contract, especially if the contract is one of uberrima fides . All contracts and consent will be vitiated in the event of fraud or misrepresentation. However, only contracts requiring the utmost good faith must be made and to a certain extent performed openly, fairly and honestly. 1

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