ABSTRACT
Hungary used to be quite autonomous in adopting their own private legal rules before they came under the political sphere of influence of the Soviet regime after the Second World War. A more comprehensive civil code that would regulate private relations was drafted ever since, but never adopted: besides commercial law, the major part of private law was still governed by case law and customary law. The drafters of this code had the unique situation in which they were not restrained by any laws from the past. The duty of good faith can be implied as a matter of law or as a matter of fact, although the cases are not always clear on the basis on which the term is being implied. Legal differences in a free market economy have two side effects that distort the proper functioning of the market.
