A Comparative Study on the Notion and Effects of Good faith in Formation, Interpretation and Performance of Contracts Yahya

The principle of good faith and fair dealing has wide spread effects and consequences on many legal systems of the world especially in civil law countries. This rule explicitly recognized in the main international legal instruments like Principles Of International Commercial Contracts (Unidroit), Principles Of European Contract Law (PECL) and in domestic law of some countries, including Germany, Italy, France and United States. The effects of this rule are such extensive and obligatory that in accordance with the above- mentioned international instruments which make the basis for regulation of the majority of international trade relations, and despite the freedom of contracts principle, parties cannot agree on its contradiction or even limit its application.