On the Principle of Good Faith

Abstract

The principle of good faith has dual features,which could be both moral criterion and legal criterion.The establishment of good faith in mainland legal system made up for the abuse in the system caused by seeking the absoluteness of law and ignoring the motivation of legal activities.The principle and regulation of faithfulness and credit aim to maintain a kind of order,which represents the balance of benefits.The good faith has three characters: complementarily,uncertainty and equation.And it also has four major functions: defining the regulation of behaviors,balancing the confliction of benefits,setting the rules for explaining legal contract,and improving efficiency by means of reducing exchange fee.