Which statement reflects the concept of good faith in contracting?

Which statement reflects the concept of good faith in contracting?

• A. All parties to a contract must enter it in good faith
• B. Contracts must be in writing to be enforceable
• C. Consideration is required for a contract to be valid
• D. The contract must be signed by a witness

Answer: (D)

Good faith in contracting means acting honestly and with fair dealing when forming and carrying out a contract. The statement that captures this idea is that all parties to a contract enter it in good faith, reflecting sincere intent to meet their obligations and to deal honestly with each other. The other points describe formal or external requirements rather than the spirit of good faith: requiring a contract to be in writing relates to enforceability under certain doctrines, not to the honesty of the parties; consideration concerns whether both sides exchange something of value for the promises; and a witness signature is a procedural formality for proof of signing, not a reflection of honest dealing.

Good faith in contracting means acting honestly and with fair dealing when forming and carrying out a contract. The statement that captures this idea is that all parties to a contract enter it in good faith, reflecting sincere intent to meet their obligations and to deal honestly with each other.

The other points describe formal or external requirements rather than the spirit of good faith: requiring a contract to be in writing relates to enforceability under certain doctrines, not to the honesty of the parties; consideration concerns whether both sides exchange something of value for the promises; and a witness signature is a procedural formality for proof of signing, not a reflection of honest dealing.