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ARTICLE · 30 AUGUST 2023

Gotta Have [Good] Faith

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This advisory discusses the recent case law developments on the express duty of "good faith" in English law and what they may mean within the context of commercial real estate.

United KingdomReal Estate and Construction
Gavin Vollans
Gavin Vollans
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This advisory discusses the recent case law developments on the express duty of "good faith" in English law and what they may mean within the context of commercial real estate.

Background

It is commonplace for certain legal agreements, such as overage deeds and option agreements, to impose an obligation on the contracting parties to act in good faith towards each other. However, whilst it may seem obvious to the parties what good faith may look like, particularly when it is not being applied, there is still no industry-accepted definition of the expression under English law. A number of recent cases have added some guidance on what the Courts may look at when considering whether good faith has been shown.

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