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Essay / hey - 1520
Current Victorian laws on the implication of the duty of good faith in commercial contracts can be seen to parallel Commonwealth laws on the subject. In other words, in both cases these are areas of law that are still relatively unstable and uncertain. The judicial and jurisdictional differences surrounding decisions on the implied duty of good faith arise from the fact that, despite recognizing its existence, the High Court of Australia has not yet expressly considered the issue. As such, "debate within various Australian authorities regarding the existence and content of the implied duty...of good faith and fair dealing in contractual performance and exercise of contractual rights and powers" is commonplace . Trial and intermediate courts in each state have rendered varying judgments on the scope, interpretation, and application of the implied duty of good faith in a commercial context. Victoria has particularly departed from the judicial interpretation of the duty in New South Wales in that Victoria implies the duty in fact rather than in law. There are, however, a number of similarities in States' positions on good faith. This particularly concerns the reluctance of courts in both jurisdictions to conclude that commercial contracts belong to the class which requires the universal implication of the duty of good faith. Due to the relative lack of clarity, the current approach cannot be considered the best. So, (which is preferable). Despite the uncertain nature of the implication of the duty of good faith in the commercial context, it is an important element of Victorian law. In Victoria, the implication of the duty of faith in a commercial contract is in fact implied. The BP Refinery Privy Council (Westernpo...... middle of paper ...... as a universal decision on the matter, the divergence between states will always be present through its different interpretation of the implementation work of law, whether actually followed in the jurisdiction of Victoria or in the law as provided in New South Wales Due to the ambiguity, there is a lack of certainty as to whether in. In some cases, commercial contracts require that the duty of good faith be implied adds to the argument that the current system is not the preferred approach to the duty of good faith in commercial contracts in Victoria and. nationally in the future So, for Australia to move forward in this area of law, it would be prudent to create a universal concept that would bring the country closer to many other countries, such as the United States, around the world. whole, in the way they treat good faith in commercial contracts.