Shipbuilding: Termination for convenience and the doctrine of good faith
Termination for convenience clause in contracts gives the buyer the right to end the contract. U nless otherwise stated in the contract , the buyer is not required to give any reason for the termination, and there is no implied duty on the buyer to terminate in good faith. In Monde Petroleum SA v WesternZagros Ltd (1) it was said that there is no general doctrine of “good faith” in English contract law. A duty of good faith is implied by law as an incident of certain categories of contract (for example, we characterise contracts of employment and contracts between partners or others whose relationship as a fiduciary one). However, in all other categories of contract …such a duty will only be implied where the contract would lack commercial or practical coherence without it and where all the other requirements for implication are met.” Expressed “good faith” provision I n Optimares S.p.A. v Qatar Airways Group (2), the contracts included an expressed “good faith” provision