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Building Law Monthly

Good faith in the performance of a contract

In Yam Seng Pte Ltd v International Trade Corporation Ltd [2013] EWHC 111 (QB), [2013] All ER (D) 227 (Feb) Mr Justice Leggatt suggested that the traditional English hostility towards a doctrine of good faith in the performance of contracts, to the extent that it still persists, is misplaced. On this basis it may be that English contract law will develop in the direction of recognising that a term may be implied into commercial contracts (including construction contracts), the effect of which will be to impose upon the parties a duty of good faith in the performance, but not the negotiation, of a contract.

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