Good Faith

CA Intermediate · Corporate and Other Laws · MTP · January 2026
Good Faith

Suggested Answer and Working Notes:

"Good Faith": According to section 3 (22) of the General Clauses Act, 1897, a thing shall be deemed to be done in "good faith” where it is in fact done honestly, whether it is done negligently or not. The question of good faith under the General Clauses Act is one of fact. It is to be determined with reference to the circumstances of each case. Thus, anything done with due care and attention, which is not malafide, whether it is done negligently or not is presumed to have been done in good faith.

Topics: The General Clauses Act, 1897

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