The functions of the principle of good faith are as follows:

1. The function of guiding parties to exercise their rights and perform their obligations, that is, to guide parties to correctly conduct civil activities, which is equivalent to the function of behavioral norms.

2. Improve the legislative mechanism and recognize the initiative of judicial activities, that is, the function of granting discretionary power, "a blank letter of appointment for judges to create laws."

3. It helps to overcome the limitations of statutory law, namely unsuitability for purpose, non-distribution, ambiguity and lag.

4. The function of reducing transaction costs and improving transaction efficiency helps ensure transaction security.

5. In essence, the principle of good faith integrates moral norms and legal norms and has the dual functions of legal regulation and moral regulation, making legal provisions extremely flexible. Therefore, the court It enjoys greater discretion and can exclude the autonomy of the parties.

Extended information:

The manifestation of the principle of good faith in civil law

1. Civil subjects must be honest in civil activities, do not engage in fraud, do not commit fraud, and conduct Fair competition;

2. Civil subjects should exercise their rights in good faith and not obtain personal gains by harming the interests of others and society;

3. Civil subjects should keep their promises and not break the contract without authorization , perform obligations strictly in accordance with legal provisions and the parties’ agreements, taking into account the interests of all parties;

4. When the parties’ agreement is unclear or the objective circumstances change significantly after the contract is made, the parties should be determined in accordance with the requirements of good faith rights, obligations and responsibilities.

Baidu Encyclopedia-Principle of Honesty and Credit