ABSTRACT
Good faith is an important principle in contract law representing honesty, fairness and reasonable conduct between the parties. In Indian contract law the idea of good faith has remained uncertain. It does not recognise the duty of good faith in the formation of contracts which has led to the view that good faith is a moral expectation than a legal requirement. This research paper examines whether good faith in Indian contracts is a myth or emerging reality. The paper explores the evolving role of good faith by analysing the court’s interpretations. Indian courts rely on fairness, integrity and impartiality while interpreting contracts. Doctrines such as promissory estoppel have introduced the idea of good faith indirectly in Indian contract law. Courts have also emphasis on the ides of justice, equity, honesty and impartiality during the performance of the contracts. The Paper also highlights the influence of international practices, court interpretations, constitutional values and comparative study on the Indian legal system. Good faith is thus gradually being recognised as necessary to ensure balance, trust and stability in contractual relations. The paper explains that good faith is not yet and independent doctrine in the Indian contract law but it not longer a myth. It is an emerging reality which is developing through judicial creativity, comparative study, globalisation and commercial needs. The acceptance of the principle of good faith reflects a move towards a more fair and just contract law framework in India.
Chintala, Snigdha, Good Faith in Indian Contract Law: Myth or Emerging Reality (August 1, 2026).
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