Obligation of good faith.

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Every contract or duty governed by the Condominium Act imposes an obligation of good faith in its performance or enforcement.

History: Laws 1982, ch. 27, § 11.

ANNOTATIONS

Compiler's notes. — This section is substantially similar to § 1-113 of the Uniform Condominium Act.

COMMISSIONERS' COMMENT

This section sets forth a basic principle running throughout this act: in condominium transactions, good faith is required in the performance and enforcement of all agreements and duties. Good faith, as used in this act, means observance of two standards, "honesty in fact" and observance of reasonable standards of fair dealing. While the term is not defined, the term is derived from and used in the same manner as in § 1-201 of the Uniform Simplification of Land Transfers Act, and §§ 2-103(i) (b) and 7-404 of the Uniform Commercial Code [55-2-10355 NMSA 1978].

Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Condominiums and Cooperative Apartments § 26.


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