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Good Faith in English Contract Law

Summary

Under English law, there is no general doctrine of good faith. This means that there is no general obligation to act in good faith during the negotiation of commercial contracts. The exceptions to this rule include where (a) the contract contains an express duty of good faith; (b) there is a contractual discretion and a term of good faith may be implied; or (c) the agreement in question is a ‘relational’ contract giving rise to an implied term of good faith. The term that will be implied will depend on the express provision in question, and the contract as a whole.

 

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