Your Good Faith Obligations?
If you are negotiating an agreement with another person you may be unaware that you may have a duty to negotiate the agreement with the other party in good faith.
At the negotiation stage, a duty of good faith is usually imposed on both parties restricting either party from engaging in conduct involving deliberate acts of non disclosure or the making of false misrepresentations.
You should therefore ensure that when you are negotiating an agreement, you take steps to be as full and frank as possible, afford the other party due process and deal with the other party as reasonably and as fairly as possible without jeopardising your own commercial objectives.
This may be a fine line to tread but nonetheless consideration of this issue when negotiating any type of agreement could save you a lot of time, stress and money, if the contract does not end up going ahead and the other side later alleges that you breached your good faith obligations.
As is always the case in a business transaction, never assume! Rather, consider all issues and get advice if you need it. For help on any business issue you may be facing, please pop in to meet with us or call 8296 6222
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