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United Kingdom good faith and relational contractsconstruction interpretation

Aercap Partners 1 Ltd v Avia Asset Management AB

[2010] EWHC 2431 (Comm)
JurisdictionUnited Kingdom
CourtHigh Court (Commercial Court)
Year2010
StatusBinding authority

Summary

A party cannot exercise a contractual discretion for an improper purpose; rationality review applies to the exercise of such contractual powers.

Key Principle

The court held that a party cannot exercise a contractual right for an improper purpose where the contract confers a discretion; the Braganza rationality test applies to the exercise of contractual powers.

Area of Law

contract

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