Bad faith refers to being double-minded or lacking honesty by having the intention to deceive. It is agreeing to a contract without the intention of honoring it. An example of this could be an agreement where a person agrees to waive rent on a property if the tenant agrees to make specified repairs to the property. Then, if the tenant fails to make those repairs (without valid reasons) while living there rent-free, the person may accuse the tenant of bad faith.