Scarica Appunti su subjective good faith e più Appunti in PDF di Diritto solo su Docsity! Subjective good faith: - a person believes something, but what they belive is wrong - however, this mistake is justifiable, the mistake is not made with negligence - it's a mistake that a person with ordinary mental capacity could have made in order to judge if mistake is justifiable or not, you need to refer to a normal person with normal mental capacity application of SUBJECTIVE GOOD FAITH: frequent in property law some European jurisdiction have specific terminology for good faith: - known as "Gut Glauben" in German Law, whereas objective good faith is known as "Treu und Glauben" - no specific terms in Italian law (just buona fede) - known as good faith in the European legal texts OBJECTIVE GOOD FAITH standard of conduct: a person who acts respecting certain requirements of fairness ‒> IT IS A DUTY FOR THE CONTRACTING PARTIES: contracting parties MUST conduct in good faith - if parties don't act in good faith, there will be legal consequences it is the conduct of fair dealing during the contractual procedure, starting from the negotiation phase until the end of contract key-words = standard of conduct European legal texts refer to objective good faith as "good faith and fair dealing" Objective good faith is : 1) open-ended norm: what is a conduct in good faith depends on the circumstances of the case 2) it is the gateway through which moral values enter the law 3) objective good faith plays a central role in the ENTIRE LIFE OF THE CONTRACT SUBJECTIVE OR OBJECTIVE GOOD FAITH? PICC ⇒ ART. 1.7: Good faith and fair dealing: (1) Each party must act in accordance with good faith and fair dealing in international trade. (2) The parties may not exclude or limit this duty ⇒ PICC finds application in B2B transactions, therefore in international trade ⇒ it is a MANDATORY PROVISION PECL ⇒ Art. 1:201: Good faith and fair dealing: 1) Each party must act in accordance with good faith and fair dealing. 2) The parties may not exclude or limit is duty PECL apply to B2C, C2C and B2B as well; therefore the word "in international trade" are left out (as seen in PICC) DCFR ⇒ I. Art 1:103: Good faith and fair dealing: 1) A person has a duty to act in accordance with good faith and fair dealing in performing an obligation, in exercising a right to non-performance, or in exercising a right to terminate an obligation or contractual relationship 2) The duty may not be excluded or limited by contract or other judicial act DCFR wants to specify all the stages in which the fair dealing counts ⇒ central role through the entire life of the contract PROBLEM ⇒ reader might think that this norm lists all possible application of objective good faith in par 2): DCFR chooses the passive form to express that objective good faith is a duty MAIN CONCLUSIONS THAT ARISE FROM EU TEXTS All the European texts include the principle of good faith in contract law as the BASIS of the regulation What kind of food faith? Good faith and fair dealing = clearly objective good faith = standard of conduct all the European texts include good faith with a MANDATORY NATURE ⇒ it cannot be excluded by the parties Good faith: MAIN APPLICATIONS 1) precontractual phase 2) to break contracts 3) to develop rules on hardship 4) to control general conditions Breaching of pre-contractual duties leads to: precontractual liability compensation for damages ⇒ negative damages, not positive damages negative damages: all damages suffered because I was involved in a negotiation which ended badly and for the time, opportuinity and money lost amount of damages depends on the duration of negotiations⇒ the longer contractual negotiation lasts, the more damages you get FUNCTIONS OF GOOD FAITH: 1) interpretative function: - tool to interpret the agreements- - guide principle for interpretation - used by the parties and the courts 2) supplementing function: - good faith can fill gaps or add something in the agreement - good faith can add or supplement duties established by the parties with other duties which are coming from good faith and not expressively written in the contract - duty to cooperate: good faith principle can be source of duties for the parties - used by the parties and the courts (e.g. rengeotiation) - creates supplementary duties (precontractual stage - after the contract was performed); - A has to build an office building for B and A is unable to proceed with the works because B refuses to apply for a building permit or does not give the information necessary to obtain said permit ‒> SO B violates his duty to cooperate; supplementing function of good faith in action 3) restrictive function: - tool to restrict the exercise of contractual rights - it is the strongest fuction, it leads to limiting of contractual rights (good faith can limit or adapt concept of rights and duties) - limitation of the binding force of contract