28-1-211. Implied covenant of good faith and fair dealing. The conduct required by the implied covenant of good faith and fair dealing is honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.
Montana Code Annotated
Mont. Code Ann. § 28-1-211 (2026)
Implied Covenant Of Good Faith And Fair Dealing
✓ current as of May 2026
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TITLE 28. CONTRACTS AND OTHER OBLIGATIONS
CHAPTER 1. OBLIGATIONS IN GENERAL
Part 2. Obligations Imposed by Law
Implied Covenant Of Good Faith And Fair Dealing
History: En. Sec. 1, Ch. 571, L. 1987.
Notes of Decisions
Cited in 45
cases (12 in the last 5 years), 1989–2026 · leading case: Story v. City of Bozeman, 791 P.2d 767 (Mont. 1990).
Story v. City of Bozeman, 791 P.2d 767 (Mont. 1990). “Most importantly, in § 28-1-211, MCA, the 1987 Legislature defined the standard of conduct under the implied covenant as honesty in fact and the observance of reasonable commercial standards the same standard applied to merchants under the Uniform Commercial Code.”
Morrow v. Bank of Am., N.A., 2014 MT 117, 324 P.3d 1167. “We affirm the order of the District Court granting summary judgment to Bank of America on the Morrows’ breach of contract claim.”
Hardy v. Vision Serv. Plan, 2005 MT 232, 120 P.3d 402. “Section 28-1-211, MCA. We measure the nature and extent of the obligations of good faith and fair dealing by the parties’ justifiable expectations.”
Masters Grp. Int'l, Inc. v. Comerica Bank, 2015 MT 192, 352 P.3d 1101. “” ¶68 In its complaint, Masters pleaded “Breach of Implied Covenant” as a separate count. However, within that count, Masters tied its claim directly to the alleged actions taken by Comerica in violation of the contract.”
Draggin' Y Cattle Co. v. Junkermier, Clark, Campanella, Stevens, P.C., 2019 MT 97, 439 P.3d 935. “Implied as a matter of law in every contract is a covenant of good faith and fair dealing requiring "honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade.”
Puryer v. HSBC Bank USA, Nat'l Ass'n, 2018 MT 124, 419 P.3d 105. “" Section 28-1-211, MCA. "In a great majority of ordinary contracts, a breach of the implied covenant is only a breach of the contract and only contract damages are due.”
Haines Pipeline Constr., Inc. v. Montana Power Co., 830 P.2d 1230 (Mont. 1991). “Section 28-1-211, MCA. See also § 30-2-103(b), MCA.”
Knucklehead Land Co. v. Accutitle, Inc., 2007 MT 301, 172 P.3d 116. “Overlooking material issues of fact regarding commercial reasonableness of the Appellees’ actions? ¶18 Knucklehead argues that the District Court improperly granted summary judgment on its claim for breach of the implied covenant of good faith and fair dealing.”
Mann Farms v. Traders State Bk. of Poplar, 801 P.2d 73 (Mont. 1990). “In Story, we set forth the standard of conduct required by the implied covenant: “For every contract not covered by a more specific statutory provision, the standard of compliance is that contained in § 28-1-211, MCA: “ ‘The conduct required by the implied covenant of good faith…”
Kinniburgh v. Garrity, 798 P.2d 102 (Mont. 1990). “Section 28-1-211, MCA. Story, 791 P.2d at 775 .”
Precision Theatrical Effects, Inc. v. United Banks, N.A., 2006 MT 236, 143 P.3d 442. “) In their District Court arguments, the parties used the definition of good faith under § 28-1-211, MCA, which references honesty and the observance of reasonable commercial standards, and reads similarly to the UCC definition in Title 30as it was amended in 2005.”
Richland Nat'l Bank & Trust v. Swenson, 816 P.2d 1045 (Mont. 1991). “” Section 28-1-211, MCA; Story, 791 P.2d at 775 .”
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