Contracts as Literature: A Hermeneutic Approach to the Implied Duty of Good Faith and Fair Dealing in Commercial Loan Agreements

Authors

Barbara A. Fure

Abstract

The claim of breach of the implied duty of good faith and fair dealing has become a common basis for a borrower's complaint against its lender after the lender has performed an act allegedly permitted under a loan document, such as accelerating payment of the borrower's indebtedness or terminating a borrower's line of credit. This article examines cases and commentary that have addressed the concept of the implied duty of good faith in this context. Preliminarily, this article concludes that in the context of commercial loan documents, the implied duty of good faith is inapplicable.

First Page

729

Recommended Citation

Barbara A. Fure, Contracts as Literature: A Hermeneutic Approach to the Implied Duty of Good Faith and Fair Dealing in Commercial Loan Agreements, 31 Duq. L. Rev. 729 (1983).
Available at: https://dsc.duq.edu/dlr/vol31/iss4/5