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What Can U.S. Legislators Learn from the European View of Good Faith?

BY Mark Abell
August 02, 2014

The concept of “good faith” exists in most civil law jurisdictions but is frequently interpreted in different ways. Common law jurisdictions, such as the United States, however, generally have an uneasy relationship with the concept of a duty of good faith, as is illustrated by the case law and proposed legislation considered in the previous articles in this series, published in the January, February and March 2014 editions of this newsletter.

The General Common Law Approach

The traditional common law view of the concept of a duty of good faith between contracting parties was best summed up by the English Judge, Bingham, LJ, who commented (Interfoto Picture Library Ltd v. Stiletto Visual Programmes Ltd (1988) 1 All ER 384 at 352 (CA)):

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