good faith
Good Faith means dealing honestly and fairly with someone, trusting they will do the same, without needing to spell out every worst case scenario in writing.
In plain English
"So there is no contract, no paper, nothing?" Chidinma asked, staring at her brother across the table. "Just like that, you gave him ₦800,000 for the generators?" Emeka shrugged. "He has been my supplier for six years. I trust him. That is good faith."
Good faith is that calm agreement underneath every deal, spoken or not, that both sides intend to play fair. It is not naivety and it is not proof against being cheated. It simply means you enter an arrangement believing the other person means well, and you carry yourself the same way in return.
In business, this word shows up in serious places. When two companies are negotiating a merger, lawyers will often say both parties must negotiate in good faith, meaning no one should be secretly planning to sabotage the talks while pretending to cooperate. A landlord in Lagos who tells a tenant repairs will be done by month end, and genuinely intends to do them, is acting in good faith even if the plumber disappoints him.
In the United Kingdom, good faith matters a lot in insurance. When you take out a policy, you are legally expected to disclose relevant information honestly. Hide the fact that your building has a history of flooding, and the insurer can refuse your claim later, because the whole contract rested on your good faith declaration.
For someone in the diaspora sending money home to a relative managing a small shop, good faith is the reason you do not ask for receipts every single week. You trust the relationship, and that trust, tested over time, is what keeps remittances flowing without friction.
It is worth saying plainly that good faith is not a shield against disappointment. People can act in good faith and still fail. The value of the phrase is in describing intention, not guaranteeing outcome.
Adaeze lends her business partner ₦500,000 to cover stock for their shared boutique, trusting the profit will be split fairly as always. No agreement is signed, because six years of good faith dealing has made paperwork feel unnecessary between them.
Questions people ask
Is good faith legally enforceable on its own?
Not usually by itself. Courts often look for good faith as part of interpreting a contract or duty, but you generally need an actual agreement or law behind it for a court to act. Good faith supports a case, it rarely stands alone as the whole case.
Can someone still be sued if they acted in good faith?
Yes. Good faith describes intention, not competence or outcome. A person can genuinely mean well, make a costly mistake, and still face a claim, though courts sometimes treat honest intention as a factor when deciding fairness or damages.
How is good faith different from a handshake deal?
A handshake deal is the informal agreement itself, the terms both sides accept without writing them down. Good faith is the honest spirit expected to sit behind that agreement, whether it is written, spoken, or sealed with nothing more than a nod.
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