... understanding of the specific market conditions, might no longer be able to use this information to its own advantage. Another argument against such a principle is that it is difficult to know what exactly it means. Is it for example contrary to good faith to negotiate concurrently with several parties in relation to the same contract without disclosing this fact to any of them? Or to sell a house without disclosing any structural defects? Smith1 points to the huge volume of litigation generated by section 242 of the German Civil Code the principal source of the duty to good faith in German contract law, as proof that this duty is by no means clear-cut. Does the English legal system actually have a principal to bargain in good faith? The English system has been described as one 'which does not recognise a general obligation of the parties to conform to good faith ...

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