Mid Essex Hospital Services NHS Trust v Compass Group UK and Ireland (t/a Medirest) [2012] EWHC 781 (QB); [2013] EWCA Civ 200 – Law Journals

Contract: Making your mind up

Tom Whittaker weighs up the judicial scrutiny of contractual discretion ‘Historically, the court has required only that the relevant decision be made without arbitrariness, capriciousness and irrationality. More recent cases, however, suggest that the court may also require that the decision be reasonable.’ Contracts often confer obligations to make decisions, exercise discretion or form opinions …

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Contract: Gotta have faith

In the second of two articles, Chris Parker, Gregg Rowan and Nick Pantlin look at the judicial implication of a duty of good faith ‘The precise formulation of the duty differs between cases, but the essence seems to be a requirement to exercise the discretion honestly and in good faith, and not to act in …

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Contract: Keeping the faith

In the first of two articles, Chris Parker, Gregg Rowan and Nick Pantlin help readers to navigate obligations of good faith in commercial contracts ‘In general, a duty of good faith, whether express or implied, will not require a party entirely to subvert its own commercial interests to those of the counterparty, or to give …

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Negotiation: Cards on the table

Simon Lewis examines the duty of good faith in commercial contracts ‘The implication of a general duty of good faith is unlikely to arise where the contract under consideration is detailed, leaving relatively little scope or need for the implication of terms not already covered by existing contractual obligations.’English contract law does not like the …

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Contract: Take the money and don’t run

David Sawtell considers how far good faith can apply to repudiatory breach ‘If the innocent party has no other reason to affirm the contract than to maximise its damages, the court might scrutinise its claim.’If a party is in serious breach of a contract, the so-called ‘innocent’ party needs to know whether or not it …

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Construction Focus: The end of the age of collaborative working?

John Starr examines collaborative working in the context of the Latham report, and the realities of the construction industry ‘Some academic commentators are quick to extol the virtues of altruistic behaviour, even where this involves the voluntary compromise of commercial rights, whereas to others this approach appears foolish, even dangerous.’Collaborative working (sometimes referred to as …

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Contract: Keeping the faith

David Sawtell looks ahead from the Medirest judgment ‘The clearest point to be taken from the Medirest litigation is that the court will scrutinise the express terms of the contract.’The High Court and Court of Appeal decisions in Mid Essex Hospital Services NHS Trust v Compass Group UK and Ireland (t/a Medirest) [2012]; [2013] have …

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Contract: Faith in the system

Alistair Maughan and Sarah Wells look at whether a duty of good faith can ever be implied into a contract? ‘English courts have long held that parties should have the freedom to contract in the way that they wish, and so have been reluctant to intervene and impose overriding obligations of good faith. However, two …

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