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Good Faith: The European View
Editor's Note: In May of this year, we published an article titled “Franchise Agreements and the Duty of Good Faith In European Civil Law,” the first part of this two-part study. The discussion concludes herein.
The concept of good faith is firmly established in the civil law jurisdiction of the European Union (EU), although it manifests itself in different forms in each of them, despite the influence of both the German and French law.
Although common law lawyers may not like it, the traditional idea that good faith is not part of common law business-to-business contracting is now outdated, whether in England, Ireland, Australia or the United States. An implied concept of good faith is steadily gaining recognition as a legally binding concept and independent cause of action in common law systems during the performance phase of contracts, particularly in long-term relational agreements such as franchise agreements.
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