Kwade trouw

Bad faith is a subjective element in Dutch law that stands in contrast to good faith. It denotes the presence of knowledge or suspicions on the part of a party that a particular legal act is invalid, unlawful or infringes the rights of third parties.

In the Civil Code, bad faith plays a role in, among other matters, acquisitive prescription, third-party protection in the transfer of goods and the principles of reasonableness and fairness in contracts. A party acting in bad faith cannot invoke certain statutory protective provisions and faces an increased risk of liability or annulment of the legal act.