The Implied Duty of "Good Faith" in Australian Contract Law
AbstractIn this comment the author examines the implied principles that make up the larger principle of good faith in Australian contract law. Unlike other jurisdictions as in Europe and the United States, the Australian legal system is not committed to proof of good faith in contract law. Instead, several judgments have claimed that good faith can be implied in the contract if other principles are evident in the terms or the facts, such as loyalty, honesty, cooperation, reasonableness and proper purpose. The author concludes by saying that although there is no need to entrench a new principle of good faith in Australian law, its further recognition would improve confidence in this area of legal practice. |