header-logo header-logo

In good faith?

07 August 2015 / Dov Ohrenstein
Issue: 7664 / Categories: Features , Commercial
printer mail-detail
nlj_7664_ohrenstein

What is the impact of the good faith doctrine on commercial contracts, asks Dov Ohrenstein

As the Hon Marilyn Warren AC, Chief Justice of the Supreme Court of Victoria, wrote: “Whole forests have been felled to produce judicial and academic writing on the meaning of good faith in contract law” (see “Good faith: Where are we at?” (2010) 34 Melbourne University Law Review 344, 345).

Historically, the courts have been reluctant to adopt a doctrine of good faith in English contract law and generally took the approach that there is no legal principle of good faith in dealings between commercial contractual parties. For example:

  • Lord Steyn, wrote in 1997: “I have no heroic suggestion for the introduction of a general duty of good faith in our contract law. It is not necessary” (“Contract Law: Fulfilling the Reasonable Expectations of Honest Men” (1997) 133 Law Quarterly Review 433, 439).
  • Lord Justice Bingham stated in Interfoto Picture Library Ltd v Stiletto Visual Programmes [1989] QB 433, [1988] 1 All ER 348: “In many civil law systems, and
If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Thomson Hayton Winkley—Suzie Fisher

Thomson Hayton Winkley—Suzie Fisher

Cumbria firm appoints long-serving lawyer as new managing director

Taylor Wessing—Kim Wedral

Taylor Wessing—Kim Wedral

Employment specialist joins Cambridge office as partner

Mewburn Ellis—Amy Crouch

Mewburn Ellis—Amy Crouch

Patent litigation offering boosted by partner appointment

NEWS
The Solicitors Regulation Authority (SRA) has published a statement in a bid to clear up confusion over the right to conduct litigation following Mazur and another v Charles Russell Speechleys
Homebuyers could be given an option to sign a binding contract with vendors to protect against the practice of parties pulling out of agreements after months of negotiations, under a proposed overhaul of conveyancing laws
A future Conservative government would abolish the Sentencing Council and Judicial Appointments Commission (JAC) and sack judges who defended migrants’ rights, shadow justice secretary Robert Jenrick has said
UK law firms have risen up an annual index of responsible business activity, while US firms have regressed amid President Trump’s diversity and equality crackdown
The right of the press to report on the criminal courts received a boost this week, following an update to the Criminal Procedure Rules
back-to-top-scroll