How should 'good faith' be interpreted?

摘要

There is no overriding principle in English law that parties should act in good faith when carrying out contractual obligations. However, terms expressly obliging the parties to act in good faith are becoming increasingly common in construction contracts, although there is still very little authority on how these should be interpreted and what they require in practice. One of the most talked-about decisions last year was Compass Group v Mid Essex Hospital. Interest mounted as to whether this decision marked a watering down in the way that the English Courts approached good faith obligations. The Court of Appeal has answered with a resounding 'no' and reinforced the traditional approach to such clauses.