Good Faith in Australian Contract Law

Sydney Law School Research Paper No. 06/55

Journal of Contract Law, Vol. 19, p. 156, 2003

24 Pages Posted: 28 Nov 2006

See all articles by John Carter

John Carter

The University of Sydney - Faculty of Law

Elisabeth Peden

The University of Sydney - Faculty of Law

Abstract

This article seeks to address and arrest the recent judicial trend to reduce 'good faith' in contract law to an implied term with a vague and inappropriate meaning. The authors argue that good faith is inherent in all common law contract principles, and that an attempt to imply an independent term requiring good faith is at once unnecessary and a retrograde step. The article further discusses the meaning of 'good faith', which requires a sophistocated understanding of the meaning of 'honesty'. Further, the problems with defining 'good faith' as including 'reasonableness' and 'unconscionability' are outlined.

Keywords: Good faith, Contract law, Commercial construction of contract, Implied terms

JEL Classification: K12, K40

Suggested Citation

Carter, John and Peden, Elisabeth, Good Faith in Australian Contract Law. Sydney Law School Research Paper No. 06/55, Journal of Contract Law, Vol. 19, p. 156, 2003, Available at SSRN: https://ssrn.com/abstract=947352

John Carter (Contact Author)

The University of Sydney - Faculty of Law ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

Elisabeth Peden

The University of Sydney - Faculty of Law ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

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