TechSolutions enters into a service agreement with Innovatech requiring timely software updates by specified dates. Midway through the contract, TechSolutions discovers it cannot meet the deadlines due to staffing shortages. Instead of notifying Innovatech, TechSolutions provides updates that are delayed and lack essential features. Innovatech decides to take legal action for breaching the duty of good faith and fair dealing. Which of the following best supports Innovatech's claim?
TechSolutions did not disclose the staffing shortages affecting performance.
The agreement lacked specific penalties for late software updates.
TechSolutions delivered updates later than the agreed deadlines.
Innovatech experienced inconvenience due to delayed updates.
TechSolutions did not communicate the staffing shortages that affected its ability to perform as agreed, violating the obligation to act in good faith by withholding critical information impacting the contract.
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What does the duty of good faith and fair dealing mean in contracts?
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