The Role Of The Principle Of Good Faith In International Trade Contract Negotiations

Abstract

This study aims to explore the role of the principle of good faith in international trade contract negotiations and highlight the importance of adhering to this principle as a means to ensure fair dealings, enhance mutual trust, and achieve a balance of interests among parties during the negotiation stages. The research addresses the issue of insufficient legal regulation for the negotiation phase, which can lead to the misuse of negotiation freedom and trigger future disputes. The primary research question posed is: How does the principle of good faith contribute to balancing interests and ensuring the success of international contracts?

The study employs a descriptive methodology to analyze the nature of the principle of good faith and an analytical approach to examine its contribution to the success of contractual processes. Practical examples and comparative studies between different legal systems, such as Anglo-Saxon and civil law, were utilized to illustrate the impact of this principle in various contexts.

The main findings indicate that adherence to the principle of good faith requires the implementation of fundamental obligations such as disclosure and confidentiality, which help eliminate ambiguity and foster trust among parties. Additionally, the principle contributes to reducing future disputes and serves as a preventive tool for enhancing the stability of international contracts.

The study concludes that the principle of good faith is not merely a moral obligation but a legal necessity for achieving successful international contracts. It recommends developing national and international legislation to regulate the negotiation phase and raising awareness of the principle’s importance through seminars and workshops.