The traditional starting point in English contract law is that parties are free to do what they like so long as they do not breach the agreed terms.
But it is becoming increasingly common for parties to agree terms requiring them to act in “good faith”, or similar. Even where no such term is expressed in the contract, courts and tribunals are increasingly being asked to imply good faith obligations.
As a result, commercial parties may be uncertain what is required of them.
In this fourth of our series of contract disputes practical guides, Chris Parker, Gregg Rowan and Nick Pantlin consider the circumstances in which parties may owe one another duties of good faith, what those duties may involve, and some practical steps that can be taken to minimise the risks. You can click here to download the PDF guide.
Clients and contacts of the firm can also register to access the archived version of our webinar exploring these issues by contacting Jane Webber. The webinar lasts an hour and qualifies for one CPD point. Or if you would prefer a shorter version focusing on key practical tips, Gregg has also presented this 12 minute podcast.
There are three previous editions in the series, listed below, which can be accessed from the home page for our contract disputes series (which is also linked under "our guides" in the top menu):
- When do you have a binding contract? It may be more (or less) often than you think
- What does your contract mean? How the courts interpret contracts
- Pre-contractual statements: When can they come back to bite you?
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Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.