Good faith: a more sceptical view

The extent to which English law recognises and gives effect to an obligation to act in good faith remains a matter of some dispute. In our June 2012 issue (at pp11–12) we considered the judgment of Mr Justice Cranston in Compass Group UK and Ireland Ltd v Mid Essex Hospital Services NHS Trust [2012] EWHC 781 (QB), [2012] All ER (D) 230 (Mar) in which he upheld the validity of a clause which required the parties to co-operate with each other in good faith in the performance of the contract. But in the more recent case of Shaker v Vistajet Group Holding SA [2012] EWHC 1329 (Comm), [2012] All ER (D) 141 (May) Mr Justice Teare adopted a more sceptical approach which suggests that a pre-contractual duty to act in good faith remains generally unenforceable.

The extent to which English law recognises and gives effect toan obligation to act in good faith remains a matter of some dispute. In ourJune 2012 issue (at pp11–12) we considered the judgment of Mr Justice Cranstonin Compass Group UK andIreland Ltd v Mid Essex Hospital Services NHS Trust [2012] EWHC 781 (QB),[2012] All ER (D) 230 (Mar) in which he upheld the validity of a clause whichrequired the parties to co-operate with each other in good faith in theperformance of the contract. But in the more recent case of Shaker v VistajetGroup Holding SA [2012] EWHC 1329(Comm), [2012] All ER (D) 141 (May) Mr Justice Teare adopted a more scepticalapproach which suggests that a pre-contractual duty to act in good faithremains generally unenforceable.