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How far does good faith take you?

Overview

In a recent case, the High Court rejected the contention that an express duty of good faith stated in part of a contract operated across the contract as a whole.


The key point arising out of this case is that, where the parties have identified specific situations in which they will be required to act in good faith, it is less likely that the Court will find that there is a general duty to perform a contract in good faith.


This is the latest decision in a growing line of cases concerning good faith obligations and can be an unfortunate area of exposure for contractual parties.

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