Legal Definitions - good

In legal terms, the word "good" describes something that is legally sound, valid, reliable, or sufficient to meet a specific legal requirement. It signifies that an item, document, action, or status is effective, enforceable, and will withstand legal scrutiny.

• Good Faith: This refers to acting honestly and with sincere intentions, without any hidden motives or desire to deceive. Many legal agreements and transactions require parties to act in good faith.

  • Example: When two companies are negotiating a merger, they are often expected to bargain in good faith. This means they must genuinely try to reach an agreement, disclose relevant information truthfully, and not intentionally mislead each other to gain an unfair advantage. If one company secretly negotiates with a competitor while pretending to be serious about the merger, they would likely be found to have violated their duty of good faith.

• Good Cause: This denotes a legitimate, legally acceptable, and justifiable reason for taking a particular action or for a certain situation to exist. It implies that the reason is not arbitrary or frivolous.

  • Example: An employee who is fired might challenge their termination, arguing there was no good cause for it. If the employer can demonstrate that the employee repeatedly violated company policy despite warnings, that would likely constitute good cause for dismissal. Conversely, if the employee was fired simply because the manager disliked them without any performance issues, there would be no good cause.

• Good Standing: This term indicates that an entity, such as a corporation or a licensed professional, has fulfilled all necessary legal and administrative requirements to maintain its legal existence or authorization to operate.

  • Example: A lawyer must maintain their license in good standing with the state bar association to practice law. This involves paying annual fees, completing continuing legal education, and not having any disciplinary actions against them. If a lawyer fails to pay their fees or is suspended for misconduct, they would no longer be in good standing and would be legally prohibited from representing clients.