The new COVID-19 leasing Code of Conduct and Regulations require
landlords and tenants to negotiate in good faith. One of the
overarching principles of the National Code of Conduct is:
"Landlords and tenants will negotiate in good faith."
What is required by an obligation to negotiate in good faith and
what would breach that obligation?
Legal commentary on good faith can be divided into three
categories:
- What does good faith require?
- What will be a breach of good faith?
- What does good faith permit?
There are some clear and accepted answers to these questions:
good faith will require honesty and a commitment to the
negotiation. Unreasonable delay, providing false information,
threating a breach of contract or shifting position may breach an
obligation to negotiate in good faith. But good faith does not
require a party to act in the interests of the other party, and
good faith does not require anyone to come to an agreement. If
negotiations fail, even
