Meaning

The aspirational view of good faith is tied to the general behaviours and shared cultural values that the alliance Participants aim to achieve in their project. These usually relate to cooperation and communication between the Participants, and a requirement to always be fair and honest and act with integrity.

To give effect to the aspirational concept of good faith, alliance agreements usually set out an exhaustive definition. Generally, the requirement to act in good faith includes:

1. an obligation on the parties to cooperate in achieving the contractual objectives (loyalty to the promise itself);

2. compliance with honest standards of conduct;

3. compliance with the reasonable standards of conduct, having regard to the interests of the parties.