Duty of Good Faith in UK Law
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Bristol and West Building Society v Mothew
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A fiduciary is someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. A fiduciary must act in good faith; he must not make a profit out of his trust; he must not place himself in a position where his duty and his interest may conflict; he may not act for his own benefit or the benefit of a third person without the informed consent of his principal.
Even if a fiduciary is properly acting for two principals with potentially conflicting interests he must act in good faith in the interests of each and must not act with the intention of furthering the interests of one principal to the prejudice of those of the other: see Finn (op.cit.) He must not allow the performance of his obligations to one principal to be influenced by his relationship with the other. He must serve each as faithfully and loyally as if he were his only principal.
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Socimer International Bank Ltd ((in Liquidation)) v Standard Bank London Ltd
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It is plain from these authorities that a decision-maker's discretion will be limited, as a matter of necessary implication, by concepts of honesty, good faith, and genuineness, and the need for the absence of arbitrariness, capriciousness, perversity and irrationality.
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Globe Motors, Inc. (a corporation incorporated in Delaware, USA) and Others v TRW Lucas Varity Electric Steering Ltd (First Defendant/Appellant) TRW Ltd (Second Defendant)
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The second is that, as seen from the Carewatch Care Services case, an implication of a duty of good faith will only be possible where the language of the contract, viewed against its context, permits it. It is thus not a reflection of a special rule of interpretation for this category of contract.
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Yam Seng Pte Ltd (a Company Registered in Singapore) v International Trade Corporation Ltd
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Such "relational" contracts, as they are sometimes called, may require a high degree of communication, cooperation and predictable performance based on mutual trust and confidence and involve expectations of loyalty which are not legislated for in the express terms of the contract but are implicit in the parties' understanding and necessary to give business efficacy to the arrangements.
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Alan Bates and Others v Post Office Ltd
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No single one of the above list is determinative, with the exception of the first one. This is because if the express terms prevent the implication of a duty of good faith, then that will be the end of the matter. However, many of these characteristics will be found to be present where a contract is a relational one. In other cases on entirely different facts, it may be that there are other features which I have not identified above which are relevant to those cases.
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Medforth v Blake
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They are duties in equity imposed in order to ensure that a receiver, while discharging his duties to manage the property with a view to repayment of the secured debt, nonetheless in doing so takes account of the interests of the mortgagor and others interested in the mortgaged property. What a mortgagee or a receiver must do to discharge them depends upon the particular facts of the particular case.
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Insurance Act 2015
...... be if the contract were entered into;“the duty of fair presentation” means the duty imposed by ... a matter of expectation or belief is made in good faith. . (4) The disclosure required is as ......
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The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
......duty in the course of the calendar year to contact an .... (8) Where a disclosure is made in good faith in accordance with this regulation no civil ......
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Modern Slavery Act 2015
......(1) The Commissioner must encourage good practice in—(a) the prevention, detection, ...2015/1476, reg. 2(c) . 43: Duty to co-operate with Commissioner . (1) The ... that—(a) the act was done in good faith, and(b) there were reasonable grounds for doing ......
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Sentencing Act 2020
...... of State with a view to encouraging good practice in connection with such an activity. . ... if the committing court has a power or duty to order the offender to be disqualified under ... that—(a) the purchaser was acting in good faith when purchasing the goods, or(b) the lender was ......
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The Journey of Good Faith: Where Does It belong in General Contract Law?
This piece considers the doctrine of good faith and its existence in contract law which began with Lord Mansfield’s judgment in Carter v Boehm. Then, reconsiders the general contract law approach i......... Then, reconsiders the general contract law approach in reluctance to establishing an overriding duty of good faith. Parallels are drawn from the operation of the pre-contractual duty of good faith in insurance contracts to demonstrate that an ......
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Reconstructing Insurance Law: The Law Commissions' Consultation Paper
In July 2007 the English and Scottish Law Commissions published the consultation paper Insurance Law – Non‐disclosure and Breach of Warranty (hereafter LCCP) which sets out in detail the Commission......... reference to the key areas of utmost good faith, warranties and agency . Thi s ... towards reforming the pre-contractual duty of good faith. By wa y of backdropto the ......
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Book Review: Commercial Contract Law: Transatlantic Perspectives
......Contract design and good fa ith; 4. Implied terms and interpretation; 5. ... e duty of good faith and the doctri ne of ......
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Partnerships, Joint Ventures and Duties of Disclosure: The University Court of the University of St Andrews v Headon Holdings Limited
...... misrepresentations and were in breach of a duty of disclosure. The pursuers argued that, in the ... proposition manifestly does not hold good”.18. In light of this, both the Outer and Inner ... the stringency of the duty of good faith between partners.32. For Lord Malcolm, the ......
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No Duty Of Good Faith In Non-Exclusive Agency Agreement
In Acer Investment Management Ltd & anr v Mansion Group Ltd [2014] EWHC 3011 (QB) the English High Court was once again asked to address the question whether a particular contract – in this case, a...
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The Emergence of an Implied Duty of Good Faith in Contracts Governed By English Law
One of the issues that distinguishes U.S. law from English law is the concept of an implied contractual duty of good faith. While U.S. law has embraced this concept, it was believed that English la...
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