Critically Analyze Case Laws to Identify the Changes in Duty of Good Faith in English Contract Law

Abstract

Generally, English contract law is not keen to recognize the duty of good faith, and the reason is ingrained in the fact that the English Legal System greatly values the significance of freedom of contract; hence, the ruling from various UK courts shows its reluctance to recognize the duty of good faith. However, recent case laws have given some indication that the position of the English Legal System is moving towards acknowledging the duty of good faith in some particular situations. The decision in Yam Seng played a legendary role in respect of this matter. Even though the decision of Yam Seng was not welcomed wholeheartedly by everyone, this case will always be regarded as a landmark case for introducing the notion of good faith in English contract law. Post-Yam Seng's situation demonstrates that the obligation of good faith is finding its way to English law both by its inclusion as an express term and by implication. The objective of the research is to review and categorize significant case laws to determine how courts have interpreted and applied the duty of good faith in contractual relationships. This paper will examine the viewpoints of judges regarding the necessity and implications of good faith in contracts. This paper will also assess whether these cases reflect an acceptance of the duty of good faith as a legal principle.