Good faith

Equity and good conscience obviously will not permit a finding that an acceptance of a plan by a person acting in a representative capacity is in 'good faith' where that person is obtaining an undisclosed benefit from the plan.

Honesty; absence of fraud, collusion, or deceit. 91 Wis. 464. See "Bona Fide Purchaser."

An honest intention to abstain from taking any unconscientious advantage of another, even through the forms or technicalities of law, together with an absence of all information or belief of facts which would render the transaction unconscientious. Wood V. Conrad, 2 S. D. 334, 60 N. W. 96. See Winters v. Haines, 84 111. 688; Rawson v. Fox, 65 111. 200; Thornton v. Bledsoe, 46 Ala. 73; Bronner v. Loomis, 17 Hun (N. Y.) 442. That honesty of intention and freedom from knowledge, of circumstances which ought to put him on inquiry, which protects a purchaser, holder, or creditor from being implicated in an effort by one with whom he is dealing to defraud some party in interest. Canal Bank v. Hudson, 111 U. S. 80, 4 Sup. CL 303, 28 L. Ed. 354. Good faith, in a statute regulating chattel mortgages, and declaring unrecorded moi*tgages to be invalid as against purchasers and mortgagees in good faith, means such as parted with something of value, or otherwise altered their position irretrievably, on the strength of the apparent ownership, and without notice. Good faith in this connection means actual reliance upon the ownership of the vendor or mortgagor, because without notice of the incumbrance; National Bank of the Metropolis v, Sprague, 21 N. J. Eq. 536. Good faith is presumed in favor of the holder of negotiable paper; Dresser v. Construction Co., 93 U. S. 94, 23 L. Ed. 815; Collins V. Gilbert, 94 U. S. 764, 24 L. Ed. 170; Marfleld v. Douglass, 3 N. Y. Super. Ct. 360; it is a presumption of law; Jones v. Simpson, 116 U. S. 609, 6 Sup. Ct. 538, 29 L. Ed. 742; and outweighs a presumption of payment; Louisville, N. A. & 0. Ry. Co. v. Thompson, 107 Ind. 442, 8 N. E. 18, 9 N. E. 367, 57 Am. Rep. 120; and such holder takes the paper free from any infirmity in its origin except such as make it void for Illegality of consideration or want of capacity in the mak- County of Sac, 96 U. S. 51, 24 L. Ed. 681. While the presumption of law is sufficient in the absence of evidence, if the good faith of A party is put in issue by his adversary, he has a right to give affirmative evidence of it; Macon County v. Shores, 97 U. S. 272, 24 L. Ed. 889; as, where his ownership of negotiable paper is put in issue, he may prove he became the owner in good faith; Ralls County V. Douglass, 105 U. S. 728, 26 L. Ed. 957. A person to. whom the want of good faith is imputed in a statement shown to have been made by him may be asked if he believed this statement to be correct; Rawls v. Ins. Co., 27 N. Y. 282, 84 Am. Dec. 280. After proof of circumstances relied on as showing want of good faith by putting a person on Inquiry, he may explain them by showing the reasons why he did not pursue the inquiry; Seybel v. Bank, 54 N. Y. 288, 13 Am. Rep. 583; and after stating the explanation received upon inquiry he may testify that he was satisfied with it; Jennings v. Conboy, 73 N. y. 236. Where the knowledge of the third person is in issue proof of general reputation is sometimes competent as tending to show reasonable ground of belief or suspicion; Barrett v. Western, 66 Barb. (N. Y.) 205. Good faith is not disproved by a forgotten conversation; Kenyon v. See, 29 Hun (N. y.) 214. One who has purchased for value and without notice, or his transferee, is termed a holder in good faith; Mc Clure v. Oxford Tp., 94 U. S. 432, 24 L. Ed. 129. A holder of a negotiable instrument in due course must have taken it in good faith. Neg. Instr. AcL § 52.

Good faith consists in an honest intention to abstain from taking any unconscientious advantage of another, even through the forms or technicalities of law, together with an absence of all information or belief of facto which would render the transaction unconscientious. Crouch v. First Nat. Bank, 156 111. 348, 40 N. E. 974; Docter V. Furch, 91 Wis. 464, 65 N. W. iel: Gress v. Evans, 1 Dak. 387, 46 N. 'W. 1132; Walraven v. Bank, 96 Tex. 331, 74 S. W. 530; Searl v. School Dist., 133 U. S. 553, 10 Sun. Ct. 374, 33 L. Ed. 740.

Defined under Good in Black's Law Dictionary.

Good faith consists in an honest intention to abstain from taking any unconscientious advantage of another, even through the forms or technicalities of law, together with an absence of all information or belief of facts which would vender the transaction unconscientious. Civil Code Dak, § 2105; 1 Dak. 399, 46 N. W. Rep. 1132. As to a purchaser in good faith, see BoNA Five PURCHASER.