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ARTICLE · 23 OCTOBER 2017

NEC: Mutual Trust And Cooperation

The NEC3 form had the (widely publicised) aim of encouraging cooperation, collaborative working and a fair allocation of risk between the parties to the contract.

South AfricaCorporate/Commercial Law

The NEC3 form had the (widely publicised) aim of encouraging cooperation, collaborative working and a fair allocation of risk between the parties to the contract. This was typified by clause 10.1, which appeared in each contract in the NEC3 suite and imposed an obligation on the parties to act in "a spirit of mutual trust and co- operation".

This clause created a great deal of debate amongst lawyers and those working under the contract which, until recently, had been left largely unresolved due to the lack of judicial comment on the clause. However, there have been two court judgments in the United Kingdom  this year which have drawn on clause 10.1 in support of their respective decisions and in doing so have shed light on what it means in practice for parties to act "in a spirit of mutual trust and co- operation."

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