THE IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
The Nevada Supreme Court has recognized the implied covenant of good faith and fair dealing that attaches to contracts. This covenant is explained in the 1991 decision in Hilton Hotels Corporation v. Butch Lewis Productions, Inc. 107 Nev. 226, 808 P.2d 919 (1991). In its decision, the Court held: “When one party performs a contract in a manner that is unfaithful to the purposes of the contract and the justified expectations of the other party are thus denied, damages may be awarded against the party who does not act in good faith. Whether the controlling party’s actions fall outside the reasonable expectations of the dependent party is determined by the various factors and general circumstances.” (citations omitted)
