Good Faith In The Transaction Law Of Real Property

The duty of good faith is generally considered as the obligation of a party to a contract not to act in a manner that is unfair or unreasonable in some sense. And the theory of good faith has been part of the general legal thought at common law as well as at the civil law tradition throughout the 20th century. With the great developments and changes of society and with the shift of paradigms in legal thought from the 19th century Classical Legal Thought to the 20th century realism, good faith play a more and more important role in whether legislation or jurisdiction. The practices of judges citing good faith as a tool to balance the equities among the parties when there lacks the definitude rules to apply have become more common than that of past. The purpose of this paper is to explore how the concept of good faith has been applied during the past decade in the aspects of real property transaction. By introducing the related practices of British, America and Canada, the author of this paper have a hope that he can uncover some valuable problems concealed in the course of China's real property transaction and offer a little advice on the construction of China's realproperty law in relation to good faith. The general conclusion of this paper is that the duty of good faith is well established in many aspects of real property transaction, although the same results can and are achieved by means of other more traditional doctrines. And good faith can release its more positive energy if the good faith is warranted by institutions!...