Section 1–304. Obligation of Good Faith.

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Terms Used In N.Y. Uniform Commercial Code 1-304

  • Contract: A legal written agreement that becomes binding when signed.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

Every contract or duty within this act imposes an obligation of good faith in its performance and enforcement.