This Page was last updated on 17 March 2016
Rule, clause or Condition |
Determination |
Date of Hearing |
Points made within Determination (Verbatim
extracts given in Italics, or between “quotes”)
|
|
4.2 Good faith |
ADA27 |
Jan 2016 |
5.7.2. The
obligation to act in good faith requires the parties to (inter alia) “observe
reasonable commercial standards of fair dealing”. This is established by the cases cited by [the TOC]. These were Berkeley Community Villages Ltd and Anor v F Pullen and Anor [2007]
1330 Ch, (of which I found paragraphs 86-98 particularly helpful) and CPC Group Ltd v Qatari Real Estate
Investment Company[2010] EWHC 1535 (see the analysis at paragraph 237 –
248). 5.7.3 The
obligation to observe reasonable commercial standards of fair dealing should
mean that agreements are adhered to, especially when they are legally
binding. …. 5.7.4 However, that
is not what happened in this case.
Here the Parties entered into an agreement that was confirmed in
writing …... Subsequently, however,
NR has sought to go back on and deny the validity of the agreement on grounds
…. that have failed and which could and should have been mentioned before the
agreement was entered into …. 5.7.7 NR
voluntarily entered into the agreement, which I have concluded is enforceable
- because NR’s points of defence fail.
….. This seems to me to be a
breach of reasonable commercial standards; there is a breach of “reasonable
commercial fair dealing”. Therefore
NR is in breach of the obligation of good faith … ADA27,
paras. 5.7.2 - 5.7.7 |