Dear ODG Members,

Although it is only a first instance decision, the judgment of Leggatt J in Yam Seng PTE Ltd v International Trade Corporation Ltd [2013] EWHC 111 (QB) http://www.bailii.org/ew/cases/EWHC/QB/2013/111.html might be of interest to colleagues, as it purports to be the first English consideration of a general obligation to perform contractual obligations in good faith (from [119]ff). The facts concerned a distribution rights agreement in respect of "Manchester United" branded toiletries throughout various territories. Leggatt J raises questions regarding the "traditional English hostility", surveying comparative materials, and concludes that an implied duty may be possible, although context-specific. (at [145]). "there is in my view nothing novel or foreign to English law in recognising an implied duty of good faith in the performance of contracts. It is consonant with the theme identified by Lord Steyn as running through our law of contract that reasonable expectations must be protected". Having concluded that one party was in breach of the agreement and acted in bad faith, the judge then makes some interesting observations about the measure of damages.

Best wishes,

James

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James Lee
Lecturer and Director of Careers
Academic Fellow of the Inner Temple
Birmingham Law School
University of Birmingham
Edgbaston
Birmingham
B15 2TT, United Kingdom

Tel: +44 (0)121 414 3629
E-mail: j.s.f.lee@bham.ac.uk<mailto:j.s.f.lee@bham.ac.uk>



Web: http://www.birmingham.ac.uk/staff/profiles/law/lee-james.aspx