This precedent has been authored by Dr. Gordon Hughes, Principal, Davies Collison Cave Law.

Introductory note

Contracts often include a generic obligation for each party to act in good faith towards the other. This may be redundant in the sense that there is an implied duty to act in good faith in any event (see Hospital Products International Pty Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64; BC8400480), although the inclusion of a clause of this nature ensures the implied obligation is not lost through the operation of general exclusion of implied terms.