Fraud by Good Faith Defense (also known as the Good Faith or Good Faith Exception) is a legal defense used in cases of alleged fraud. It is based on the idea that a party may have been mistaken as to a particular fact or circumstance, and therefore did not intend to commit fraud. This defense is often used when a party has been accused of making false representations, or has failed to disclose important information. The defense typically requires that the party accused of fraud had an honest belief that the representations made were true and that there was no intent to mislead or deceive. The court will consider all relevant evidence when determining whether a party had a good faith belief, including the nature and circumstances of the transaction, the relationship between the parties, and the parties' knowledge and experience. There are two types of Fraud by Good Faith Defense: 1. The "Reasonable Belief" Defense: This defense requires that the defendant had a reasonable belief that the representations made were true and/or that the omissions of information were not material to the transaction. 2. The "Justifiable Reliance" Defense: This defense requires that the defendant had justifiable grounds to rely on the representations made and/or to omit information. This defense is based on the idea that the defendant acted in reliance on the representations made and/or the omissions of information.