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Contracts

Journal Articles

1985

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Full-Text Articles in Law

"Contort": Tortious Breach Of The Implied Covenant Of Good Faith And Fair Dealing In Noninsurance Commercial Contracts - Its Existence And Desirability, Matthew J. Barrett Jan 1985

"Contort": Tortious Breach Of The Implied Covenant Of Good Faith And Fair Dealing In Noninsurance Commercial Contracts - Its Existence And Desirability, Matthew J. Barrett

Journal Articles

Every contract contains an implied covenant of good faith and fair dealing which prohibits any contracting party from injuring another party's right to receive the benefits of the agreement. Breach of this implied covenant creates a cause of action in contract. Beginning twenty-five years ago, some courts also recognized a cause of action in tort for breach of this implied covenant in insurance contracts.

In recent years, the California courts, the leaders in the development of “‘contort,”’ have repeatedly faced the issue whether courts should expand its application beyond the insurance context. Resolution of the issue is important because ...