What legal concept requires that contracts be performed in good faith?

The doctrine of good faith and fair dealing is a legal concept that mandates parties to a contract to act honestly and fairly towards each other, ensuring that the contractual agreement is fulfilled as intended by both parties. This principle is embedded in many contracts, and it is a fundamental aspect of contract law in various jurisdictions, including Nevada.

This doctrine exists to prevent one party from undermining the purpose of the contract or exploiting a situation to the detriment of the other party. For example, in a construction contract, a contractor must perform the work as agreed while also considering the reasonable expectations and interests of the client. This ensures that both parties uphold their side of the agreement while fostering trust and cooperation.

In contrast, the other concepts mentioned do not directly deal with the requirement of acting in good faith in the performance of contracts. The rule of majority consent pertains more to decision-making processes within groups and organizations rather than contractual obligations. Equitable estoppel and the doctrine of laches concern legal defenses and the timing of claims within the legal proceedings, focusing on preventing parties from unfairly disadvantaging others through their actions or inactions rather than emphasizing the bond of good faith in contractual relationships.