Legislating a Good Faith Obligation in Australia

This chapter examines the possibility of legislating a good faith obligation in Australia. To date, there remains no High Court decision that has decided on its application and definition. Despite its uncertain status, good faith has nevertheless played a

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n u r h i daya h a bdu l l a h

Good Faith in Contractual Performance in Australia

Nurhidayah Abdullah

Good Faith in Contractual Performance in Australia

Nurhidayah Abdullah Faculty of Economics & Administration University of Malaya Kuala Lumpur, Malaysia

ISBN 978-981-15-6077-4    ISBN 978-981-15-6078-1 (eBook) https://doi.org/10.1007/978-981-15-6078-1 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Singapore Pte Ltd. 2020 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Macmillan imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-­01/04 Gateway East, Singapore 189721, Singapore

I dedicate this book to my mother, Rusizah binti Mohd Taib; my two beloved children, Mohd Al Haddad bin Mohd Hakimi and Nur Hurin Amani bin Mohd Hakimi; and my beloved family for their endless support and unconditional love. To my late father, Abdullah bin Kassim, who passed away on the 18th of April 2018, may Allah accept him among the guided ones. Amin.

Preface

Good faith is arguably the most controversial, frustrating and poorly defined concept in contract law. Judges and scholars have different and contradicting views of the concept of good faith, both as to its operation and as to its meaning. The concept of good faith nevertheless has begun to gain recognition and continues to have an increasing influence on many types of contracts in many contexts. The concept of good faith had generally been rooted in countries that practice civil law. Only now is it beginning to be acknowledged in some common law countries. The aim of this book is to give a detailed account of the current state of the law concerning good faith in contractual performance. In Australia, good faith is an area of law which is undergoin