ABSTRACT
The practical effects of the characterisation of good faith in insurance contracts have fallen for consideration before the courts there are many occasions when the courts have taken the opportunity to explain the basis of the duty. In England, the duty of good faith was presented as a prohibition of fraud in insurance contracts and was the subject of a few decisions in the late 17th century, which appear to rely on jurists concerned with the law merchant. The juristic basis of the duty of utmost good faith examined in respect of each of its recognised manifestations and the remedy available for the breach of the duty. The duty of good faith evolved with the invaluable assistance of Lord Mansfield as part of the law merchant, which by the time was incorporated within the common law. Baron Park identifies three separate categories of breaches of the duty of good faith at placing: fraud; material, though innocent, misrepresentation; and material non-disclosure.
