Good Faith in Formation of Contract with Emphasis on the Convention for the International Sale of Goods

Principle of good faith plays its role in various forms in conclusion of a contract. Some aspects of this role is played in pre-contractual stage in the form of imposing limitations on principle of freedom of negotiation and also being as a basis for secondary obligations such as duty to disclose information and the duty of confidentiality. There is no agreement among legal systems concerning the status of good faith in contract-making. Disagreement particulary appears in interpreting the ambiguous text of article 7 of the United Nations Convention for the International Sale of Goods (CISG). This research aims to study and analyze the status of good faith in contract formation in the context of CISG. In an ultimate conclusion, it can be said that there is no coherent approach concerning the application of good faith in contract formation in context of CISG. As a result, it can be argued that there is a conformity between Iranian law and CISG.