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ARTICLE · 12 MAY 2017

Litigation Newsletter - April 2017

Dillon Eustace
Dillon Eustace
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Dillon Eustace

Dillon Eustace

Dillon Eustace is one of Ireland’s leading law firms focusing on asset management and investment...

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The Court of Appeal has overturned a High Court ruling that there was a general principle of good faith in Irish commercial contract law in its ruling in Flynn v Breccia [2017] IECA 74.

IrelandCorporate/Commercial Law

Contractual Good Faith

The Court of Appeal has overturned a High Court ruling that there was a general principle of good faith in Irish commercial contract law in its ruling in Flynn v Breccia (Unreported, Court of Appeal, 8 March 2017) [2017] IECA 74. Finlay Geoghegan J held that the shareholders' agreement was not the type of contract to which any general duty of good faith applied in accordance with established Irish authority. The judgment noted that Irish contract law does not recognise a general principle of good faith and fair dealing, although there are certain, limited categories of contractual relationships which imply a duty of good faith, such as partnerships and insurance contracts.

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