Good faith in contract law : with particular reference to commercial transactions in England, Scotland and selected common-law jurisdictions (Australia, South Africa and USA)
This thesis is study of the principle of good faith in contract law. In the last fifteen years enormous attempts have been made by contract lawyers, especially those in common law systems, to consider the question of good faith in contracts. But the approach that has been taken by those lawyers in dealing with this important question is unsatisfactory and incapable of producing a coherent understanding of the role of good faith in contracts. Instead of considering the essential question of good faith in contracts, especially commercial contracts, the debate has turned out into a battle between common law and civil law. This approach creates a polarized debate. This study will concentrate on the applications of good faith in arm 's length contractual relationships. This will no doubt concentrate the analysis on its operation in contracts generally, without involving other theories that may explain the courts' concern over the problems of bad faith conducts. Examining good faith as a general requirement in contracts is vitally important in order to reach a coherent understanding of its implications for contracting parties. This study will examine in depth the most important issues regarding the operation of the good faith principle in contract law. I will examine the rationality of this principle in pre-contractual negotiations. This area of contract raises difficult questions in many common law legal systems. The Introduction of the principle of good faith at the stage of negotiation under the PECL and the UNIDROIT Principles has strengthened the role of that principle at the formation of contracts. The interaction between the principle of good faith and express terms in contracts will also be examined in an attempt to identify the limits of the parties' freedom in the enforcement of contract terms. In addition to dealing with the operation of the principle of good faith throughout the life of the contract, it is also vitally important to analyse the general provisions of good faith in the PECL, CISG, UCC and the UNIDROIT Principles. Examining these general provisions of good faith will help us to understand its role in commercial contracts.