The laws of Bahrain impose obligations upon contracting parties
that are in most cases additional to those obligations set out in
the express terms of a contract.
Article 127 of the Bahraini Civil Code thus stipulates that a
contract shall not be limited to the obligations of the contracting
parties to do that which is expressly agreed in the contract, but
shall extend to include other obligations ancillary to it by virtue
of the law, custom and nature of the transaction. One such
ancillary obligation that is imposed on contracting parties by
virtue of the law is the obligation of good
faith enshrined in the text of Article 129 of the
Bahraini Civil Code.
The Bahraini Civil Code imposes a duty on contracting parties to
always act in good faith. The duty of a party to
act in good faith is an obligation to deal honestly and
fairly when contracting. It is an automatically implied
obligation, strongly codified in the Bahraini Civil Code. However,
despite the Bahraini
