2016•Oxford University Press eBooksOpen access

Is There a Duty to Negotiate in Good Faith?

Michael Philip Furmston, Gregory Tolhurst, Eliza Mik

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Abstract

Abstract This chapter assesses the duty of good faith in negotiation. In general, even civilian systems which have long adopted notions of good faith performance have been much slower to accept notions of good faith negotiation. So all over the world the question of whether the parties should be under a duty to negotiate in good faith is very much at the forefront of the debate. The traditional view is that there is no general duty of good faith in negotiation. However, the doctrinal principles applied in England and Australia frequently serve to promote good faith. Those who wish to argue for a general rule of good faith, contractual or tortious, can find support in certain case law. But the mere fact of entering into negotiations does not create such a duty.

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Abstract This chapter assesses the duty of good faith in negotiation. In general, even civilian systems which have long adopted notions of good faith performance have been much slower to accept notions of good faith negotiation. So all over the world the question of whether the parties should be under a duty to negotiate in good faith is very much at the forefront of the debate. The traditional view is that there is no general duty of good faith in negotiation. However, the doctrinal principles applied in England and Australia frequently serve to promote good faith. Those who wish to argue for a general rule of good faith, contractual or tortious, can find support in certain case law. But the mere fact of entering into negotiations does not create such a duty.

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Available abstract

Abstract This chapter assesses the duty of good faith in negotiation. In general, even civilian systems which have long adopted notions of good faith performance have been much slower to accept notions of good faith negotiation. So all over the world the question of whether the parties should be under a duty to negotiate in good faith is very much at the forefront of the debate. The traditional view is that there is no general duty of good faith in negotiation. However, the doctrinal principles applied in England and Australia frequently serve to promote good faith. Those who wish to argue for a general rule of good faith, contractual or tortious, can find support in certain case law. But the mere fact of entering into negotiations does not create such a duty.

Key concepts: Duty, Negotiation, Faith, Good faith, Law, Political science, Form of the Good, Law and economics

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