Duty of Good Faith in UK Law

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

    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 Febrero 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.

  • 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)
    • Court of Appeal (Civil Division)
    • 20 Abril 2016

    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.

  • Medforth v Blake
    • Court of Appeal (Civil Division)
    • 26 Mayo 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 Febrero 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.

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

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Legislation
  • 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 ......
  • Modern Slavery Act 2015
    • UK Non-devolved
    • 1 de Enero de 2015
    ...... (1) The Commissioner must encourage good practice in-. . . (a) the prevention, ... S-43 . Duty to co-operate with Commissioner 43 Duty to ... . (a) the act was done in good faith, and. . . (b) there were reasonable grounds for ......
  • 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 ......
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... than a Saturday, a Sunday, Christmas Day, Good Friday or a day which is a bank holiday in ... filed and until an order is made, it is the duty of the applicant to file with the court notice of ... person dealing with the liquidator in good faith and for value is not concerned to enquire whether ......
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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 ......
  • Partnerships, Joint Ventures and Duties of Disclosure: The University Court of the University of St Andrews v Headon Holdings Limited
    • Núm. , Mayo 2018
    • Edinburgh Law Review
    • 282-288
    ...... 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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Law Firm Commentaries
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