Marquette Law Review Volume 64 Article 1 Issue 3 Spring 1981 The orT t of Bad Faith Breach of Contract: When, If At All, Should It Be Extended Beyond Insurance Transactions? Thomas A. Diamond Follow this and additional works at: http://scholarship.law.marquette.edu/mulr Part of the Law Commons Repository Citation Thomas A. Diamond, The Tort of Bad Faith Breach of Contract: When, If At All, Should It Be Extended Beyond Insurance Transactions?, 64 Marq. L. Rev. 425 (1981). Available at: http://scholarship.law.marquette.edu/mulr/vol64/iss3/1 This Article is brought to you for free and open access by the Journals at Marquette Law Scholarly Commons. It has been accepted for inclusion in Marquette Law Review by an authorized administrator of Marquette Law Scholarly Commons. For more information, please contact
[email protected]. MARQUETTE LAW REVIEW Vol. 64 Spring 1981 Number 3 THE TORT OF BAD FAITH BREACH OF CONTRACT: WHEN, IF AT ALL, SHOULD IT BE EXTENDED BEYOND INSURANCE TRANSACTIONS? THOMAS A. DIoND* I. INTRODUCTION Implied as a matter of law within every contract is a cove- nant of good faith and fair dealing requiring that neither party do anything which will injure the right of the other to receive the benefits of the agreement.' Through application of this covenant, a breach of contract may be found when a promisor, by his bad faith conduct, has jeopardized or de- stroyed a promisee's opportunity to reap the expected benefit of the bargain, even though that conduct failed to violate ex- pressed provisions of the agreement.2 In recent years, courts in several jurisdictions have given this implied covenant extra- contractual relevancy by holding the breach thereof to be tor- tious,3 thereby permitting the injured promisee remedial relief * Professor of Law, Whittier College School of Law.