The Concept of Good Faith Obligation

Priestley JA in Renard Constructions (ME) Pty Ltd v Minister for Public Works (Renard Constructions) said that the implication of good faith and fair dealing is a reflection of ‘community expectations of contractual behaviour.’ Indeed, a good faith approach of holding contracting parties to their bargain is of considerable benefit to the wider community and intrinsic in the very nature of contract in our common law legal system. Good faith is not a new phenomenon in contract law.