A recent High Court decision emphasises the importance for commercial parties, especially in the tech sector, of robust contract drafting and strategic negotiation.
The implication of good faith in commercial contracts has long been a contentious issue in English law. While some jurisdictions adopt an overarching duty of good faith, English courts have historically taken a more cautious and piecemeal approach. The recent High Court decision in Macdonald Hotels v Bank of Scotland [2025] EWHC 32 (Comm) re-ignite this debate, delivering fresh guidance on the circumstances under which a duty of good faith may be implied into commercial agreements and what it means for businesses operating under long-term commercial agreements.
The UK Supreme Court’s decision in R (on the application of Cobalt Data Centre 2 LLP and another) v HMRC [2024] UKSC 40 revisits a foundational question in contract law: when parties revise their terms, at what point does a variation become a replacement? And how does the law determine the moment one contract ends and another begins?