BONA FIDE
This is pronounced as /bəʊnə ˈfiːdeɪ/. This latin term means "in good faith". Bona fide connotes a sincere intention to be fair, open and honest in relations be it personal or contractual relations. A transaction performed bona fide is one with absence of fraud or deception. A person who acts bona fide has acted without intention to deceive.
As intention is a principal ingredient in legal transactions, it is important that all parties act bona fide. In Equity, a bona fide purchaser of legal estate for value without notice of encumberance or existing title has the right to retain ownership of the estate.
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