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Apr 28, 2022

A Century Later: Implied Duty of Good Faith and Fair Dealing Still Going Strong

Parties to construction contracts are often surprised to learn that they are bound to implied unwritten contract obligations in addition to the written terms of their contracts. Courts in the United States began to recognize certain implied contract obligations about 100 years ago in circumstances where application of the common law rules of contract formation and interpretation would lead to results that the parties to the contract clearly did not intend.  As a result, the courts required that the implied contract obligations be consistent with and necessary to carry out the express terms of the contract, such that it could… Read more