This has multiple meanings:
- In trademark law it refers to an actual intent to deceive or confuse the public by the use of a counterfeit or confusingly similar mark. In many jurisdictions, evidence of bad faith may limit the defenses available to an infringer and may potentially increase damages.
- In the context of a misstatement by a party, it usually means the actual intent to deceive, not the inadvertent misleading or confusion of another party.
- In contract law, bad faith also generally means a breach of the covenant of good faith and fair dealing (see Good Faith; Fair Dealing) where such a covenant exists. In general it means either entering into a commercial arrangement that the party has no intent to actually perform, or concealing material information from the counterparty, or trying to frustrate the counterparty’s fulfillment of its obligations.