Colorado Revised Statutes

Colo. Rev. Stat. § 4-1-304 (2026)

Obligation of good faith

✓ current as of July 2026
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Every contract or duty within this title imposes an obligation of good faith in its performance and enforcement.

Source: L. 2006: Entire article R&RE, p. 468, § 1, effective September 1.

Editor's note: This section is similar to former § 4-1-203 as it existed prior to 2006.

Notes of Decisions
Cited in 7 cases (3 in the last 5 years), 2007–2024 · leading case: DREAM FINDERS HOMES LLC, a Florida Ltd. Liab. Co., & DFH Mandarin, LLC, a Florida Ltd. Liab. Co., & v. WEYERHAEUSER NR Co., a Washington Corp., & Cross-Appellee., 506 P.3d 108 (Colo. Ct. App. 2021).
DREAM FINDERS HOMES LLC, a Florida Ltd. Liab. Co., & DFH Mandarin, LLC, a Florida Ltd. Liab. Co., & v. WEYERHAEUSER NR Co., a Washington Corp., & Cross-Appellee., 506 P.3d 108 (Colo. Ct. App. 2021). · cites it 2× “See § 4-1-304, C.R.S. 2021 ("Every contract or duty within this title imposes an obligation of good faith in its performance and enforcement.”
v. Am. Stand. Ins. Co. of Wisconsin, 2019 COA 11 (Colo. Ct. App. 2019). · cites it 2× “12 See § 4-1-304, C.R.S. 2018; U.C.C. § 1-304 (Am.”
ADT Sec. Servs., Inc. v. Premier Home Prot., Inc., 181 P.3d 288 (Colo. Ct. App. 2007). · cites it 3× “Section 4-1-304, C.R.S.2006. This duty applies when one party has discretionary authority to determine certain terms of the contract, such as quantity, price, or time.”
Ranta Constr., Inc. v. Anderson, 190 P.3d 835 (Colo. Ct. App. 2008). · cites it 2× “See § 4-1-304, C.R.S.2007 (every contract under the UCC imposes an obligation of good faith in its performance or enforcement); Cardwell, 423 A.”
Grays v. Auto Mart USA, LLC (D. Colo. 2020). · cites it 4× “§ 4-5-109(a) (which relates to forged letters of credit) and C.R.S. § 4-1-304 (which imposes upon every contract a duty of good faith and fair dealing), relating to Auto Mart’s false claims of guaranteed credit approval, failure to disclose salvage titles, and performing only…”
Majersky v. LCM Prop Mgmt (Colo. Ct. App. 2024). · cites it 3× “Thus, we do not reach the merits on several of Majersky’s claims, including • the illegibility of LCM’s Exhibits A and B; • arguments concerning Uniform Commercial Code section 4-1-304, C.R.S. 2024 and non-existent CRE 26-26.”
Grays v. BlackHawk Aquisition, LLC (D. Colo. 2024). “Colorado Uniform Commercial Code Grays cites Colorado Revised Statute § 4-1-304 and § 4-2-515 in the TAC as bases for BlackHawk’s liability under the Colorado Uniform Commercial Code (UCC).”
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