Construction and Engineering newsletter — April 2013
The April 2013 issue of Nabarro’s Construction and Engineering newsletter is available now.
English law does not have a general obligation of good faith in contracts, but the Courts have reviewed this in the recent case of Compass Group UK & Ireland Limited (trading as Medirest) v Mid Essex Hospital Services NHS Trust[2012 EWHC 781 QB and 2013 EWCA Civ 200]. While the High Court sought to broaden the interpretation of good faith obligations within contracts, the Court of Appeal has reversed that position to the effect that there is no general doctrine of good faith under English contract law, though such a duty is implied in certain categories of contract, eg insurance; the scope of an express good faith obligation will be strictly interpreted based on its terminology and context; and a duty of good faith or to not act in an arbitrary manner will not be implied into a contract…
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