Law 2101 Study Guide - Quiz Guide: Legal Certainty, Netherlands, Unfair Contract Terms Act 1977
Document Summary
Contract law the principle of good faith and policing unfair contract terms. The principle of good faith the highest norm of contract law: france art. 1104 (1) cc: germany - 242 bgb, the netherlands art. Interfoto library ltd v stilleto ltd 1988 describes the objective" good faith: parties should not deceive each other, playing fair, coming clean, putting one"s cards face upwards on the table. Subjective good faith subjective state of mind of a person who doesn"t know nor has reason to know of a certain fact, and therefore acts in good faith. The supplementing function allows a court to fill gaps in the party agreement. Good faith can give rise to a great variety of supplementary duties that arise under the contract: duties of information, cooperation, protection, loyalty, disclosure they may already exist in the pre-contractual stage. Underlying rationale parties are in the same boat when they conclude a contract, calling for reasonable behaviour from them both.
