This website uses cookies to ensure you have the best experience. Learn more

Good Faith In The Law Of Contract

3316 words - 14 pages

In the past, in many contractual dealings, has been to the detriment of the weaker party to a contract. This was due to the rigid application of contract law by the courts and its narrow view that all parties entering into a contract are aware of the terms and conditions of the contract that they have entered into. The courts today, have looked to this notion of ?good faith?, a concept that the courts believe is an essential element to be incorporated in all contractual dealings, for fairness and equal bargaining powers. Although, the High Court has never expressly stated, until recently that ?good faith? or ?fairness? is a general principle of Australian contract law, it is suggested that ...view middle of the document...

Ultimately what this imposes on party?s entering into a contract in the future is ?a general duty to act in good faith? Butterworths legal dictionary defines laissez faire as ?a free enterprise economic system devoid of governmental intervention, which allows market forces (such as demand, supply, prices and competition) to determine the operation of business and trading.? What laissez faire essentially meant, was ?to leave alone?. Essentially if a party came to the court to argue something that was not expressly stated in the contract there were no way the courts could imply the party?s intentions or fiduciary obligations to each other.This was due to the individualism or the free market enterprises in contrast to the complete Communist enterprise. Under the ?old view? in contract law using laissez faire a person should have the capacity to enter into a contract knowing what s/he is purchasing/contracting into. Due to the competitiveness of businesses and acting in the ?free market enterprises? it essentially became the survival of the fittest.The intellectual climate incorporating both legal, moral and economic duties allowed for the freedom of contract and the courts to only look at contracts in its expressed terms only, with no inferred terms, conditions or obligations. Essentially what this led to be, that large companies abused their legal positions by exploiting the weaker smaller parties involved.The freedom of contract meant under the ?old view?, a possibility to exempt oneself/company from liabilities and unfair dealings or the ability to take advantage of a weaker party if one existed. This occurred because it was hard for the courts to move away form the common law principles of Laissez Faire. Judges did not like exemption clauses, as there was no rule of law to indicate what to do with unfair exemption clauses. What judges could do if they found that the contract was against the fundamental principles of contract was to ?wind? and ?bend around? and exclude the clause in question, through the wording of ?clause not drafted correctly or ?it was not made aware to the weaker party?. It is important to note that they never used the word ?unfair? in there judgements.As apposed to the 19th century of interpreting contracts in its rawest form (ie. What the contract expressly stated), the Australian High court has shown recently that although the political nature of a free market enterprise is to encourage people to enter into contracts at their own discretion, the courts recently have moved away from the old approached and have introduced the concept of ?fairer dealing? and ?good faith? into contractual dealings.This change is generally characterised as a move away from the strict rules of the laissez-faire model to a model based on broader standards. Examples of these standards having a strong normative content are fair dealing, fulfilling reasonable expectations and unconscionability. An example of this was the incorporation of the...

Other Essays On Good Faith In The Law Of Contract

This essay explains why it might be hard for parents to bring up children in the Christian faith

512 words - 3 pages In order to answer this question we must firstly look at what is done at the birth of the child. If they are baptised as a baby, they clearly include no opinion in the situation. If this child doesn't believe in this faith there will be obvious rise against this as they get older and realise what it means.Furthermore, a particularly social child who is busy quite a lot of the time may find it hard to go to Church when they are supposed to and

Clara Lees cakes Pty Ltd - compensation received for the cancellation of contract to regarded as taxable or not??

410 words - 2 pages cancellation of its contract. The court held the compensation to be an assessable income as the taxpayer was engaged in many business contracts at the same time and the cancellation of one of these contracts did not affect the capital structure of the business.As Clara Lees cakes Pty Ltd were engaged in 25 different agreements of the same nature, the compensation was received for cancellation of a contract made in the ordinary course of business

Euthanasia Note and good to study for law test also this was an assignment to hand in and i scored 90

342 words - 2 pages EuthanasiaEuthanasia is the practice of painlessly putting to deathpersons who have incurable, painful, or distressing diseases orhandicaps. It come from the Greek words for 'good' and 'death', and iscommonly called mercy killing. REASONS FOR People have a right to decide when they want to die. Wrong to keep

The Law Of The European Union. Nowadays A Creation Of The ECJ

1718 words - 7 pages The law of the European Union. Nowadays a creation of the ECJBrought into existence by the postwar wish to establish a European economical integration, nowadays European legal system has attained characteristics, unforeseen at the time the Treaties were drafted. Most of these tendencies occurred in the first pillar where the ECJ was endowed by the drafters with a broad scope of prerogatives. Taking an advantage of that competence with a creative

The Importance of MNC'S to the World: Good or Bad Influence

414 words - 2 pages -motivated and are engaging in destructive competition and insidious plots to economically and politically manipulate entire economies.To conclude, MNC's are necessary to have a world order. An order in which the search of benefits covers not only the company but the society in which it has been established.In this sense, MNC's are a good influence to a country, but governments are supposed to be the control agents to make its presence significative, beneficent and useful.

Do You Consider That The Introduction Of The Citizen's Charter/Service First Initiatives Over The Past Decade Have Made Any Improvements To The Law Of Public Administration ?

1655 words - 7 pages . It should be recognised that the charters, which have been introduced so far, are no alternatives to a genuine legal remedy capable of offering full compensation for any inconvenience or loss that may have been caused by the failure of a service, for example, a train turning up late to its destination. Therefore there is a lot of room for improvement in the governing of this area.BIBLIOGRAPHYTEXTBOOKS/ARTICLESCRAIG, P, P, ADMINISTRATIVE LAW, 4TH

Patent Law. The Suit Of The South African Government By 39 Pharmaceutical Corpora-Tions, Concerning Imports Of 'genuine' AIDS Drugs. Author: Irina Violina

3393 words - 14 pages before the new law could be implemented, 39 multi-national drug companies supported by the South Africa Pharmaceutical Manufac-turers Association (PMA) tried to stop the Medicines Act by suing the government of South Africa.After a three-year battle in the South Africa's High Court in Pretoria, a group of pharmaceutical companies decided on 19 April to unconditionally withdraw their court case against the South African government.2. Positions of the

The Fifth Amendment is an old friend and a good friend. Do you agree or disagree with that assessment of the Fifth Amendment? Why?

471 words - 2 pages I do agree with the above statement because of what the Amendment stands for and protects. I personally am a believer in the old adage that's its better to let one thousand guilty go free than to convict an innocent man and the Fifth amendment lines up with my beliefs. This is an amendment that's about protecting the common man from a potentially cold government and tyrannical government. It guarantees a certain level of civility from the court

The Essay Is A Research Paper That Arguments A Law In Florida That Prohibits Homosexual Men And Women From Adopting Children

1251 words - 6 pages law that forbids homosexuals from adopting children. This policy is unconstitutional and disagrees with the majority of our nations policies. Because the problem of equal adoption rights for gay/lesbian individuals is so widespread in the United States, Florida officials must change the policy that bans adoption to certain individuals because of their sexual orientation immediately; officials neglect it at their peril.The policy that bans adoption

Good Vs. Evil Basically The Text Is About The Religious Corrolation Between Robert Lewis Stevenson's "The Strange Case Of Dr. Jekyll And Mr. Hyde" And How It Goes Along Along With Mankind

633 words - 3 pages Since the beginning of time man has come across temptation and has given into it, it was the sole reason man was kicked out of paradise in the beginning of the universe. While no ones knows why mankind so openly choses the wrong path solely because that is what the individual feels that they want is unknown. It is clear that no matter how a person appears the old phrase 'don't judge a book by its cover' comes into play. While seeminglydecent

The Use Of The Internet In Mar

1245 words - 5 pages customer having their credit card number stolen.CONCLUSION: After accessing different aspects of the internet being able to keep the UK's industry competitive in a world market I sceptically believe that it has been unnecessarily over hyped and that in a few years the supply of internet based companies will liquidise.I believe that large companies may have good reasons for taking advantage of the internet as they are already established and

Similar Papers

Change The Law Of Abortion Essay

749 words - 3 pages Change The Law Of Abortion Each year, one million American teenagers are pregnant and eighty-five percent of these pregnancies are unintended. One and a half million each year are ended by abortion. Now it is time for the government to pass a law to make abortion illegal across the nation because it is a bad influence for the young people, innocent babies are being killed, and it will affect teenagers' lives when they get older.In 1973

Jesus Of History, Christ Of Faith Historical Evidence Regarding The Life Of Jesus

1101 words - 5 pages gospels. Whether or not Jesus was actually raised from the dead will probably never be known. It is easy, however, to see that there are many reasons why early Christian writers would find it necessary to write about the resurrection of Jesus, for, if one is writing in order to convert others to their religion, what good is it to worship a dead and defeated God? A God who was raised from the dead is much more attractive.The evidence for the existence

Employment And The Law In Nsw, Australia

8141 words - 33 pages indirectly; or(b) become an employee ofany business which carries on business similar to that of the employer within a radius of one (3) kilometres from the employer, without the express written consent of the employer (provided that such consent will not be unreasonably withheld).DISCIPLINE AND GRIEVANCES:The employer and employee commit to the pursuit of prompt resolution of any discipline or grievance matter in good faith and will continue to

The Good Aspects Of Getting Divorced

930 words - 4 pages love in the marriage, why do people bother keeping this relationship going? Although people usually hold negative attitudes towards divorce, there are also good sides for people who choose divorce over marriage. Some people result in getting a better life and relationships after they divorce. Therefore, based on different circumstances, not all divorces are bad if they are the best ways leading to true happiness.The article, “Divorce and Our