Tag Archives: good faith negotiations

THE IMPORTANCE OF NEGOTIATING IN GOOD FAITH

Article 1375 of the C.C.Q. states that parties must generally interact in good faith. Under Québec law, the duty to act in good faith is implicit in every contract and is defined as the absence of malicious intent in a prudent and diligent contracting party. As such, the contracting party’s behaviour must be compatible with the achievement of the parties’ common goal. The parties must abide by this obligation as soon as pre contractual negotiations begin, even if such an obligation is not expressly provided for in the pre-contractual documents. A party acting in bad faith can be found liable for any harm caused to the other party by such behaviour.

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