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The doctrine of good faith is integral to trade agreements from "summary" of Modern Law of International Trade by Ajendra Srivastava
The doctrine of good faith plays a crucial role in the realm of trade agreements. It serves as a guiding principle that underpins the conduct of parties engaged in international trade. In essence, good faith requires parties to act honestly and fairly in their dealings with each other, with a view towards upholding the integrity of the agreement. When parties enter into a trade agreement, they are bound not only by the terms explicitly outlined in the contract but also by an implicit obligation to act in good faith. This means that parties must adhere to the spirit of the agreement, not just its letter. Good faith entails a duty of cooperation and transparency, with parties expected to communicate openly and honestly with each other throughout the duration of the agreement. The doctrine of good faith serves to promote trust and mutual respect between parties, fostering a conducive environment for trade to flourish. By upholding the principles of good faith, parties can ensure that their interactions are characterized by integrity and fairness, thereby reducing the likelihood of disputes arising. In the context of international trade, where parties may come from diverse cultural and legal backgrounds, the doctrine of good faith acts as a universal standard that transcends borders. It provides a common framework within which parties can engage in trade with confidence, knowing that their counterparts are bound by the same principles of honesty and fairness.- The doctrine of good faith is integral to trade agreements because it represents the foundation upon which commercial relationships are built. By adhering to the principles of good faith, parties can navigate the complexities of international trade with clarity and certainty, fostering a climate of trust and cooperation that is essential for the smooth functioning of the global economy.
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