What is the test for an action for breach of an implied covenant of good faith and fair dealing?

MultiRegion, United States of America

The following excerpt is from Alkayali v. Den Hoed, Case No.: 3:18-cv-00777-H-JMA (S.D. Cal. 2018):

2. "The prerequisite for any action for breach of the implied covenant of good faith and fair dealing is the existence of a contractual relationship between the parties, since the covenant is an implied term in the contract." Smith v. City & Cty. of San Francisco, 225 Cal. App. 3d 38, 49 (1990).

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