Washington
How Feld v. Henry S. Levy & Sons, Inc. applies in Washington: state-specific rules, key cases, and bar exam notes for Contracts.
Washington courts apply the principles of good faith and fair dealing as intrinsic to every contract, similar to the principles outlined in Feld v. Henry S. Levy & Sons, Inc. This ensures that parties perform their contractual obligations honestly and fairly, fostering reliance and cooperation.
In Washington, the duty of good faith and fair dealing requires that parties to a contract never act arbitrarily or capriciously in their performance, particularly in contractual obligations that may enable them to exercise discretion.
The court held that the duty of good faith and fair dealing applies to the exercise of discretion in contract performance.
The court determined that even in discretionary actions under a contract, parties must still act in accordance with the duty of good faith.
The Washington Supreme Court reinforced that the implied duty of good faith and fair dealing is integral to every contract, emphasizing mutual respect for the parties' interests.
Washington's approach closely aligns with the federal standard regarding good faith and fair dealing, both emphasizing it as a fundamental principle in contract law. However, Washington courts may impose stricter obligations on parties to demonstrate fair dealing than some federal courts, which tend to rely more heavily on express terms of the contract.
Candidates should be familiar with the application of the good faith doctrine in Washington contracts, as it frequently appears in exam questions related to contract disputes.