Michigan Compiled Laws

Mich. Comp. Laws § 440.1304 (2026)

Good faith obligation.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.1304 Good faith obligation.

Sec. 1304.

Every contract or duty within this act imposes an obligation of good faith in its performance and enforcement.

History: Add. 2012, Act 86, Eff. July 1, 2013

Notes of Decisions

Cited in 10 cases (4 in the last 5 years), 2013–2026 · leading case: Gorman v. Am. Honda Motor Co., 839 N.W.2d 223 (Mich. Ct. App. 2013).

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Gorman v. Am. Honda Motor Co., 839 N.W.2d 223 (Mich. Ct. App. 2013). · cites it 2× “This statutory obligation now appears at MCL 440.1304, which is identical but for the final phrase, which now reads “performance and enforcement.”

Charles Magley III v. M&W Inc., 926 N.W.2d 1 (Mich. Ct. App. 2018). “7 Indeed, upon default, Kellogg has the right to "take possession of the Property " (emphasis added), and "the Property" is the "property described in the 'Security' section of the Truth in Lending Disclosure," which in this case is the tractor. Any accessions to the tractor…”

Lancia Jeep Hellas Sa v. Chrysler Grp. Int'l LLC (Mich. Ct. App. 2016). “The same is true regarding the duty of good faith imposed, under MCL 440.1304, on “[e]very contract or duty” that is governed by the UCC.”

Charles Magley III v. M&W Inc. (Mich. Ct. App. 2018). “” MCL 440.1304. -6- “attached” property not covered by the agreement is grouped with property that plaintiff “leave[s] inside the Property.”

Meadowlark Builders LLC v. Emily Evans (Mich. Ct. App. 2019). “” MCL 440.1304. However, the UCC applies to only specifically enumerated transactions.”

Falmouth Coop. Co. v. Peter Bontekoe (Mich. Ct. App. 2020). “The amended counterclaim asserted five counts against FCC: (1) products liability; (2) violation of the “obligation of good faith” under MCL 440.1304, which is part of the Michigan Uniform Commercial Code (UCC), MCL 440.”

Mssc Inc v. Airboss Flexible Prods. Co (Mich. 2023). “” MCL 440.1304. A quantity term must be “shown in the writing,” MCL 440.”

Schmidt v. State Farm Mut. Auto. Ins. Co. (E.D. Mich. 2024). “Laws § 440.1304 (“Every contract or duty within this act imposes an obligation of good faith in its performance and enforcement.”

Dahl Auto. Onalaska Inc. v. Ford Motor Co. (W.D. Wis. 2022). “Mich. Comp. Laws § 440.1304 This statute imposes a duty of good faith on parties to a contract.”

EMCO Corp. v. Armor Mach. & Mfg. Ltd. (6th Cir. 2026). “Mich. Comp. Laws § 440.1304 . The delay was caused by supply chain disruptions, not any desire to spite Armor or deprive it of the benefit of the bargain.”

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