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.

    That, of course, is not the end of the matter. 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.) I shall call this "the duty of good faith". But it goes further than this.

  • Ebrahimi v Westbourne Galleries Ltd; Re Westbourne Galleries Ltd
    • House of Lords
    • 03 May 1972

    The words are a recognition of the fact that a limited company is more than a mere judicial entity, with a personality in law of its own: that there is room in company law for recognition of the fact that behind it, or amongst it, there are individuals, with rights, expectations and obligations inter se which are not necessarily submerged in the company structure.

  • 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.

  • Anisminic Ltd v Foreign Compensation Commission
    • House of Lords
    • 17 Dec 1968

    But there are many cases where, although the tribunal had jurisdiction to enter on the enquiry, it has done or failed to do something in the course of the enquiry which is of such a nature that its decision is a nullity. It may in perfect good faith have misconstrued the provisions giving it power to act so that it failed to deal with the question remitted to it and decided some question which was not remitted to it.

  • Walford and Others v Miles and Another
    • House of Lords
    • 23 Jan 1992

    A duty to negotiate in good faith is as unworkable in practice as it is inherently inconsistent with the position of a negotiating party. In my judgment, while negotiations are in existence either party is entitled to withdraw from those negotiations, at any time and for any reason. There can be thus no obligation to continue to negotiate until there is a "proper reason" to withdraw. Accordingly a bare agreement to negotiate has no legal content.

  • 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.

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Legislation
  • Insurance Act 2015
    • UK Non-devolved
    • January 01, 2015
    ...... representation as to a matter of expectation or belief is made in good faith. . (4) The disclosure required is as follows, except as provided ......
  • Intellectual Property Act 2014
    • England & Wales
    • January 01, 2014
    ...... person who, before the application date, used a registered design in good faith or made serious and effective preparations to do so may contin. ue ......
  • Consumer Rights Act 2015
    • England & Wales
    • January 01, 2015
    ...... 1 . Consumer contracts for goods, digital content and services PART 1 . Consumer contracts for goods, ... . (4) A term is unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations ......
  • Abortion Act 1967
    • UK Non-devolved
    • January 01, 1967
    ......two registered medical practitioners are of the opinion, formed. in good faith—.  . (a. ) that the continuance of the pregnancy would involve ......
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Books & Journal Articles
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Law Firm Commentaries
  • Good Faith and Contract Termination
    • JD Supra United Kingdom
    Deciding whether to terminate a contract, whether at common law for an alleged repudiatory breach or under a specific term in the agreement, is rarely easy. Get it wrong and you may be in breach yo...
  • Good Faith And Maintenance Agreements
    • Mondaq UK
  • Good Faith Obligations in English Law
    • JD Supra United Kingdom
    Unlike many civil law jurisdictions in Europe, English law has generally not recognised an implied obligation that contractual parties should perform their obligations in good faith. English courts...
  • Is Good Faith a Bad Choice Under English Law?
    • JD Supra United Kingdom
    Although there remains no widely accepted definition of good faith under English law, and English law has committed itself to no overriding principle of good faith, English law has developed piecem...
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