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Bona fide. ‘In good faith’
The phrase is used frequently in the law of contract e.g. ‘a bona fide purchaser for value’. To gain the full protection of the law, persons are expected to contract in good faith, i.e. they must not feign ignorance of facts which are material to the contract. The bona fide provision is particularly relevant in contracts of insurance where the failure to disclose, whether expressly or by implication, facts that have any bearing on the risk can invalidate the whole contract, thus making the policy void. Mala fide means ‘in bad faith’.
Reference: The Penguin Business Dictionary, 3rd edt.
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