Black's defines "bad faith" as "the opposite of 'good faith'". The law dictionary explains that when bad faith is involved, actual or constructive fraud follows, along with designs to mislead or deceive another, or to neglect or refuse to fulfill some duty or contractual obligation. Bad faith is not an honest mistake—it's "sinister".

Allegations of bad faith also serve as a knee-jerk reaction in negotiation. In the context of mediation, when an offer is too low; a counter, too high; or an opposing party remains steadfast in their position … each of these examples often serves as the basis for allegations of bad faith in the caucus room. But focusing on the assumed ill-intent of counterparties at the negotiation table is more often a distractor from ongoing negotiations than productive feedback.