The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
Actually, an American concept, articulated by the New York Court of Appeals as long ago as 1933 as follows:
- In every contract there is an implied covenant that neither party shall do anything, which will have the effect of destroying or injuring the right of the other party, to receive the fruits of the contract. In other words, every contract has an implied covenant of good faith and fair dealing.
There is a similar provision in English law - utmost good faith or uberrima fides but it is not a general presumption of contract law, but only arises in certain special categories of contract (specifically insurance contracts and employment contracts).
So: in the US it comes with the set; in English law (outside Insurance and Employment) you need to negotiate it in.
What is it?
Is it different to reasonable?
- Kirke La Shelle Company v. The Paul Armstrong Company wikipedia