Good Faith as a Hindrance of Freedom of Contract under PECL

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The objective of this book was to critically analyse how good faith affects freedom of contract, and explore how good faith can lead to a balanced interest of the parties involved in pre-contractual relationship and the two concepts of good faith and freedom of contract was the cores of this research in regards to negotiation contrary to good faith and fair dealing.

Taking into account Civil Law system, the application of good faith is strict and observed.

This is because it is recognized in all stages of contract life.

Such as pre-contractual as well as in performance of contract.

So good faith is presented as an over-arching principle that restricts the freedom of contract, as standards of behaviour, element of interpretation, adaptation, avoidance etc...

By contrast, the common Law system does not recognise the strict application of good faith, in contract.

The contenders of this argue that each party must take into account their own interest; that they are free to enter, to withdrawal, at any time and for any reason.

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