An implied or express obligation in commercial leases requiring both landlord and tenant to act honestly and fairly in performing their contractual duties, without attempting to undermine the other party's rights or benefits under the lease.
The implied covenant of good faith and fair dealing exists in most U.S. jurisdictions and prevents either party from doing anything that would destroy or injure the right of the other party to receive the benefits of the contract. In a CAM context, this means a landlord cannot manipulate expense allocations, selectively enforce lease provisions, or withhold information that the tenant needs to verify charges. Some jurisdictions treat this covenant as a standalone cause of action; others treat it as part of a breach of contract claim.
A landlord reclassifies capital expenditures as operating expenses to circumvent a CAM cap, knowing the tenant cannot easily detect the change without a full audit. When the tenant requests supporting documentation, the landlord delays for months.
If your landlord is stonewalling document requests or making accounting changes that consistently increase your share of expenses, the covenant of good faith may provide legal grounds to challenge the behavior. Keep a log of every request and response.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
