Good faith and termination for convenience clauses in Australia

Gray, Anthony (2012) Good faith and termination for convenience clauses in Australia. International Journal of Private Law, 5 (4). pp. 352-372. ISSN 1753-6235

Abstract

There is an increased tendency for contracts that provide one party, typically the client, with a right to terminate the contract at their convenience. This is contrary to the typical common law approach of allowing termination of a contract only for a substantial breach by the other side. This article considers the possible legal response to the use of such clauses and, in particular, whether the doctrine of good faith might be used to allow courts to review the use of such clauses in particular cases. The common law has typically been much more reluctant than civil law jurisdictions to recognise good faith in relation to contracts, but the adoption of such a principle might temper the use by the stronger party of a termination for convenience clause in future.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright © 2012 Inderscience Enterprises Ltd.
Depositing User: Dr Anthony Gray
Faculty / Department / School: Historic - Faculty of Business and Law - School of Law
Date Deposited: 13 Jun 2012 05:44
Last Modified: 03 Jul 2013 01:12
Uncontrolled Keywords: good faith; termination for convenience; contract; Australia
Fields of Research (FOR2008): 22 Philosophy and Religious Studies > 2201 Applied Ethics > 220105 Legal Ethics
18 Law and Legal Studies > 1801 Law > 180122 Legal Theory, Jurisprudence and Legal Interpretation
18 Law and Legal Studies > 1801 Law > 180105 Commercial and Contract Law
Socio-Economic Objective (SEO2008): C Society > 94 Law, Politics and Community Services > 9499 Other Law, Politics and Community Services > 949999 Law, Politics and Community Services not elsewhere classified
Identification Number or DOI: doi: 10.1504/IJPL.2012.049357
URI: http://eprints.usq.edu.au/id/eprint/21361

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