Bona fide
In good faith
Bona fide means in good faith. It refers to acting without knowledge of adverse facts or malicious intent.
Bona fide is a Latin term used in Dutch law to denote that a party is acting in good faith. This means that the party concerned has no knowledge of circumstances that would render a juridical act invalid or unlawful.
The concept is relevant in the law of property and obligations, where it affords protection to parties who acquire ownership or enter into contracts without bad faith. Thus, a bona fide acquirer may often retain title to an asset even where the transferor lacked authority to dispose of it.
In practice, bona fide is frequently invoked in transactions to avert liability or revindication, for instance where a purchaser acquires a vehicle without knowledge that it had been stolen.
“The purchaser acquired the collateral in good faith and was therefore able to retain ownership despite the bank’s prior security interest.”
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