February 22, 2026

Contract law

Even if a party is not in breach of its express contractual obligations, it may be in breach of the implied covenant of good faith and fair dealing when it exercises a contractual right as part of a scheme to deprive the other party of the benefit of its bargain.

Dairy King, Inc. v. Boar's Head Provisions Co., Inc., NY Slip Op 00876 (2d Dep't February 18, 2026)

Here is the decision.