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Good Faith and the Ubiquity of the ‘Relational’ Contract
Author(s) -
Campbell David
Publication year - 2014
Publication title -
the modern law review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.37
H-Index - 22
eISSN - 1468-2230
pISSN - 0026-7961
DOI - 10.1111/1468-2230.12075
Subject(s) - doctrine , faith , paternalism , good faith , law , unconscionability , interpretation (philosophy) , corporation , order (exchange) , law and economics , privity of contract , political science , sociology , economics , philosophy , epistemology , exclusion clause , contract management , management , finance , linguistics
The judgment of L eggatt J in Y am S eng Pte Ltd v International Trade Corporation Ltd shows the common belief that the E nglish law of contract does not have a doctrine of good faith to be mistaken. That law does not have a general principle of good faith, but its doctrine of good faith, articulated through numerous specific duties, is more suitable for the interpretation of contracts according to the intentions of the parties than a general principle which invites the imposition of exogenous standards. That Y am S eng involved a relational contract does not mean that paternalistic exogenous standards should be imposed. It means that the good faith obligations essential even to a commercial contract of this sort must be implied in order to give efficacy to the fundamentally co‐operative contractual relationship.