A good faith statement template contains a legal document which contains details of oaths taken by all the involved parties. trying their best to avoid any misunderstandings or disputes, and to act responsibly if anything goes wrong. This document can be attached to a legal agreement in the presence of a lawyer from all parties. This way, if in future any of the parties are at fault for any argument or loss, the other party can use this good faith statement to their advantage. When two or more parties are involved in any type of official contract or deal together, there are numerous chances of some sort of dispute or disagreement arising. In such cases, the parties need to devise a strategy to minimize the risk of any havoc.
Details of Good Faith Statement
These good faith statement templates are always prepared at the initial stages of any contract or dealership. Its validity is until the expiration of the contract as it is part of a legal agreement. Till then all the involved parties are obliged to follow, stay true to their words, and not cause any trouble for any one else. This statement also states that in case one of the parties decides to violate the good faith statement, they will have to face the rightful consequences.
Content of Good Faith Statement
A good faith statement template is usually issued by the representatives of each party in the presence of a lawyer. The content provided by the good faith statement is something that must be agreed upon by each party. That is why in the statement usually the term “we” is used instead of “I”. It includes a list of oaths/promises that all the individuals in the team are willing to take to ensure the whole project is carried out smoothly. Some of the main things that are included in it after the general information about the contract and introduction of the parties involved are;
• To avoid any dispute.
• To not initiate a fight.
• To act reasonably when a conflict arises.
• To not retain any valuable information from each other.
• To always think about the interests of all the team members.
• To not involve any personal rivalry with the team members in the deal.
A statement of good faith is mostly presented alongside other important documents relating to the contract, such as the document of settlement, objectives, and responsibilities.
Significance of a Good Faith Statement
A good faith statement is not a necessary document, but it has multiple benefits which take the upper hand. Whenever we are a part of any official team, business, or organization for a specific time period. We always want to make sure that the business or deal is carried out in a peaceful way. And when any two or more parties come together, different mind-sets and disputes are inevitable. Our job as a member of the team is to minimize the chances and if it still happens, act judiciously. This enables you to create an impressive and responsible impact on the other members. It also alleviates your relationship with the organization and your chances of becoming a trustful member of the company are heightened.
Good Faith Statement Template
