The Standard of Good Faith Performance: Reasonable Expectations or Community Standards?

Abstract

It has sometimes been suggested that the common law of contract would benefit from the recognition of a duty of good faith applying generally to the performance of commercial contracts.1 Traditionally good faith has only had a very specialised application in contract law. For example, duties of good faith apply to contracts of insurance and in circumstances where the parties are in a fiduciary relationship. What is usually contemplated in suggestions that the common law contract law recognise a duty of good faith performance, is a general implied term that would supplement the express terms of a contract by requiring some degree of fair and co-operative conduct by the parties in performing the..