Duty of Good Faith in UK Law

Leading Cases
  • Bristol and West Building Society v Mothew
    • Court of Appeal (Civil Division)
    • 24 Jul 1996

    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. The distinguishing obligation of a fiduciary is the obligation of loyalty. The principal is entitled to the single-minded loyalty of his fiduciary. 2), he is not subject to fiduciary obligations because he is a fiduciary; it is because he is subject to them that he is a fiduciary.

  • Bristol and West Building Society v Mothew
    • Court of Appeal (Civil Division)
    • 24 Jul 1996

    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.

  • Socimer International Bank Ltd ((in Liquidation)) v Standard Bank London Ltd
    • Court of Appeal (Civil Division)
    • 22 Feb 2008

    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.

  • MSC Mediterranean Shipping Company S.A. (Claimant/Appellant) v Cottonex Anstalt
    • Court of Appeal (Civil Division)
    • 27 Jul 2016

    The recognition of a general duty of good faith would be a significant step in the development of our law of contract with potentially far-reaching consequences and I do not think it is necessary or desirable to resort to it in order to decide the outcome of the present case. There is in my view a real danger that if a general principle of good faith were established it would be invoked as often to undermine as to support the terms in which the parties have reached agreement.

  • Medforth v Blake
    • Court of Appeal (Civil Division)
    • 26 May 1999

    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.

  • Yam Seng Pte Ltd (a Company Registered in Singapore) v International Trade Corporation Ltd
    • Queen's Bench Division
    • 01 Feb 2013

    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.

  • Sheikh Tahnoon Bin Saeed Bin Shakhboot Al Nehayan v Ioannis Kent (Aka John Kent)
    • Queen's Bench Division (Commercial Court)
    • 22 Feb 2018

    It is trust that the other party will act with integrity and in a spirit of cooperation. The legitimate expectations which the law should protect in relationships of this kind are embodied in the normative standard of good faith.

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  • Insurance Act 2015
    • UK Non-devolved
    • 1 de Enero de 2015
    ...... . . "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 ......
  • Intellectual Property Act 2014
    • England & Wales
    • 1 de Enero de 2014
    ...... date, used a registered design in good faith or made serious and effective preparations ... . . . . (2) The duty to confirm or deny does not arise in relation to ......
  • Consumer Rights Act 2015
    • England & Wales
    • 1 de Enero de 2015
    ...... 1 . Consumer contracts for goods, digital content and services PART 1 . Consumer ... . . (a) the trader has a duty to give the consumer a refund, subject to ... if, contrary to the requirement of good faith, it causes a significant imbalance in the ......
  • Enterprise and Regulatory Reform Act 2013
    • UK Non-devolved
    • 1 de Enero de 2013
    ......(b) a conciliation officer comes under the duty in section 18A(3) to promote a settlement between ... compensation where disclosure not made in good faith 18 Power to reduce compensation where ......
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Books & Journal Articles
  • The Journey of Good Faith: Where Does It belong in General Contract Law?
    • Núm. 9-1, Enero 2019
    • Southampton Student Law Review
    • Elizabeth Barrett
    • University of Southampton
    • 64-91
    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 ......
  • Reconstructing Insurance Law: The Law Commissions' Consultation Paper
    • Núm. 71-1, Enero 2008
    • The Modern Law Review
    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 ......
  • Book Review: Commercial Contract Law: Transatlantic Perspectives
    • Núm. 21-1, Marzo 2014
    • Maastricht Journal of European and Comparative Law
    ......Contract design and good fa ith; 4. Implied terms and interpretation; 5. ... e duty of good faith and the doctri ne of ......
  • Making a Silk Purse out of a Pig's Ear ‐ Medforth v Blake & Ors
    • Núm. 63-3, Mayo 2000
    • The Modern Law Review
    ...... manager 2 appointed by him, owe no general duty of care in negligence to a mortgagor or junior ... and receivers to exercise their powers in good faith and for proper purposes, that duty ......
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Law Firm Commentaries
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