Good Faith and Co-Operation Under Construction Contracts in Uk
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- Date Submitted: 01/22/2015 08:33 AM
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Parties in a contractual relationship have an implied duty of ‘good faith’, so as not to intentionally deprive other party of the benefits of the contract; but it is not to be confused with essential ‘cooperation’ which may be required by the parties for the performance of the contract (Powell-Smith and Chappell, 2001).
These concepts are yet to receive significance in English law, however there is evidence of the some case law application by cases of Boston Deep Sea Fishing & Ice Co. v Ansell (1888) Ch D 339; London Borough of Merton v Stanley Hugh leach (1985) 32 BLR 51, and Berkeley Community Villages Ltd v Pullen [2007] EWHC 1330 (Ch) (2007) 3 EGLR 101.
Good faith concepts are more common for the Unfair Terms in the Consumer Contracts Regulation 1999 application, which is also in compliance with the European Council Directive 93/13/EEC.
In the decisions arrived for the cases, TSG Building Services plc v South Anglia Housing ltd (2013) BLR 484; R&S Fire And Security Services Ltd V Fire Defence Plc (2013) Blr 500; and Ericsson Ab V Eads Defence And Security Systems Limited (2010) Blr 131; courts recognized a duty to act in good faith and co-operation by the contracting parties in disposing their rights or performing under the contract.
Breach of good faith duty can lead to misrepresentation which can give rise to the actions in tort, this was first recognized in Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964) AC 465 (HL) (1963) 3 WLR 101 (1963) 2 All ER 575, and provisions under ‘Misrepresentation Act 1967’ applied.
‘Expectation of honesty’ as in HIH Casualty v Chase Manhattan Bank (2003) was cited by Leggatt J to impose duty of good faith in performance of the contract in Yam Seng Pte Ltd v International Trade Corporation Ltd (2013).
Justice Jackson noted important supplementary matters in relation to good faith in Costain Ltd & Others v Bechtel Ltd & Another (2005) that ‘good faith’ is referred
differently at times to ‘honesty’ or...
These concepts are yet to receive significance in English law, however there is evidence of the some case law application by cases of Boston Deep Sea Fishing & Ice Co. v Ansell (1888) Ch D 339; London Borough of Merton v Stanley Hugh leach (1985) 32 BLR 51, and Berkeley Community Villages Ltd v Pullen [2007] EWHC 1330 (Ch) (2007) 3 EGLR 101.
Good faith concepts are more common for the Unfair Terms in the Consumer Contracts Regulation 1999 application, which is also in compliance with the European Council Directive 93/13/EEC.
In the decisions arrived for the cases, TSG Building Services plc v South Anglia Housing ltd (2013) BLR 484; R&S Fire And Security Services Ltd V Fire Defence Plc (2013) Blr 500; and Ericsson Ab V Eads Defence And Security Systems Limited (2010) Blr 131; courts recognized a duty to act in good faith and co-operation by the contracting parties in disposing their rights or performing under the contract.
Breach of good faith duty can lead to misrepresentation which can give rise to the actions in tort, this was first recognized in Hedley Byrne & Co Ltd v Heller & Partners Ltd (1964) AC 465 (HL) (1963) 3 WLR 101 (1963) 2 All ER 575, and provisions under ‘Misrepresentation Act 1967’ applied.
‘Expectation of honesty’ as in HIH Casualty v Chase Manhattan Bank (2003) was cited by Leggatt J to impose duty of good faith in performance of the contract in Yam Seng Pte Ltd v International Trade Corporation Ltd (2013).
Justice Jackson noted important supplementary matters in relation to good faith in Costain Ltd & Others v Bechtel Ltd & Another (2005) that ‘good faith’ is referred
differently at times to ‘honesty’ or...