Chapter 20 End of Chapter Questions

. What reasons have been given for the limited reception of good faith in English contract law?

English law proceeds incrementally through particular solutions to particular problems rather than through broad overarching principles.

English law embodies an ethos of individualism where parties can act self-interestedly.

An overarching principle of good faith would undermine certainty.

All of the reasons given are valid ones.

. A is interested in selling his business to B. Are the parties required to negotiate in good faith?

Yes

No

. A signs an agreement for the sale of his business to B. The parties' respective shares in a subsidiary company have yet to be agreed and the contract refers to an ancillary agreement that the negotiations for the division of the subsidiary company are to be made in good faith. Good faith is a defined term in the contract. Is this provision likely to be enforceable?

Yes

No

. A and B enter into a contract whereby A is to perform services for B for remuneration over a number of years. The contract contains a term that the parties will act in good faith to each other. Is this term likely to be enforceable?

Yes

No

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