An Introduction to Good Faith

Sarah Williams

June 2012

A paper presented to the Society of Construction Law at a meeting in Reading on 7th March 2012

Does an obligation to act in good faith require behaviour that is considered merely co-operative or does it require positive acts for the benefit of other parties, possibly even against a party's own self interests? In this paper, Sarah Williams considers the concept of good faith - widely recognised in civil law systems - in various contexts. First, she looks at the Unfair Terms in Consumer Contract Regulations 1999 and associated case law. Then she turns to good faith when it appears in the duties and obligations of the parties to a contract, both generally and in standard form construction contracts. After discussing the law in Australia and the USA, she mentions the recent decision in Compass Group v Hospital Services NHS Trust.

A definition of good faith - Good faith in statutory provisions: the 1999 Regulations - Good faith as a contract term - Good faith as an express term: standard form construction contracts - Good faith: a comparison with two other jurisdictions - Postscript from England: the Compass case - Good faith: a summary.

Sarah Williams is a barrister practising from Keating Chambers in London.

Text 18 pages.