‘No Contractual Duty of Good Faith in Texas’

“In spite of most jurisdictions reading a duty of good faith and fair dealing into all contracts, a Fifth Circuit Court of Appeals has held that it is unlikely that the Texas Supreme Court would find such a duty to exist in Texas. Wow. Additionally, the court found that no fiduciary relationship between a university student and his/her university faculty and other representatives. Section 205 of the Restatement (Second) of Contracts states that ‘[e]very contract imposes upon each party a duty of good faith and fair dealing in its performance and enforcement’ …” (more)

[Myanna Dellinger, ContractsProf Blog, 28 April]

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