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- Good faith is an honest and sincere offer, while bad faith is intentionally deceptive1. In a fiduciary relationship, the agent and the principal have a duty of good faith, and the breach of this duty can lead to liability2. Failure to act in good faith is known as bad faith and is generally considered to be a level of culpability greater than negligence2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Good Faith is a term often used in legal and financial fields to represent an honest and sincere offer, whereas Bad Faith is intentionally deceptive.www.vinebiblestudy.org/vine-blog/2015/1/18/good-f…A fiduciary relationship creates a duty of good faith between the agent and the principal. The breach of this duty of good faith can lead to liability. Failure to act in good faith is known as bad faith and is generally considered to be a level of culpability greater than negligence.www.law.cornell.edu/wex/good_faith
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