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Good Faith In International Commerce

1594 Words7 Pages

Introduction:

What does good faith mean? Does good faith matter in modern commerce? If it matters to what extent does it matters?
Well it might not be a wise thought to doubt the importance of the doctrine of good faith in the twenty-one centuries where the international commerce function in a highly sophisticated way. The doctrine can easily influence from the small village transaction of goods and services to international commerce where billions of dollars are transacting to import or export goods and services in daily basis. Consequently, all those who take part in the transaction are expected to act in a good faith at least in most legal systems.
Moreover, despite some differences, most jurisdictions, international laws and treaties …show more content…

It has been related to commercial transactions and exchange of goods and services from the beginning of that time onwards. The term had served as one of Lex Mercatorian in commerce and influenced moral, philosophical and juridical institutions throughout its existence. Both the European contract law and the UNIDROIT Principles of International Commercial Contracts, contains general provisions that entail ‘parties to the commercial contracts in performing their duties or exercising their right to act in accordance with good faith and fair dealing’. The EU member state’s dedication to an integrated internal market gave a tremendous relief when questions arise as to which contract law regulation should be applied in transcontinental trade. In the domain of choice of law rules under the Rome convention entails, ‘The parties to the contract are free to select the governing law, and in the absence of an express choice, the law which is closer to the transaction will be …show more content…

The doctrine of Equity in English law is a mechanism implemented by the legislature to shield the weaker party in contractual relations. Nevertheless, the term good faith is enshrined in other certain types of contracts like in Trust law, the Marine Insurance Act of 1906 and the Unfair Contract Terms Act of 1977 . Additionally, In the process of implementing European Directives, UK has introduced good faith principle on Directive in self-employed commercial agents and the Directive on Unfair terms in consumer contracts. However, this additional inclusion might be at stake since Britain is on the verge of Brexit. What will be the fate of agreements that she concluded with the European Union is something we will see in the near

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