The limits of good faith and obligations

In Portsmouth City Council v Ensign Highways Ltd [2015] EWHC 1969 (TCC), the High Court rejected the contention that an express duty of good faith stated in part of a contract operated across the contract as a whole.

The key point arising out of this case is that, where the parties have identified specific situations in which they will be required to act in good faith, it is less likely that the Court will find that there is a general duty to perform a contract in good faith.

For more information on the case and on understanding the limits to an implied obligation to act in good faith click on the link below.