Section 52 of IPC : Section 52: "Good faith
IPC
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Explanation using Example
Example 1:
Ravi, a shopkeeper, sells a bottle of medicine to Sita, claiming it to be a cure for her ailment. Ravi did not check the expiry date or verify the authenticity of the medicine. Sita consumes the medicine and falls ill. In this case, Ravi cannot claim that he acted in "good faith" because he did not exercise due care and attention in ensuring the medicine was safe and effective.
Example 2:
Priya, a bank employee, receives a cheque from a customer and processes it without verifying the signature or the account balance. The cheque turns out to be fraudulent, and the bank suffers a financial loss. Priya cannot claim that she acted in "good faith" because she failed to exercise due care and attention in verifying the cheque's authenticity.