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Legal Considerations of Relational Contracts

In: Contracting in the New Economy

Author

Listed:
  • David Frydlinger

    (Cirio Law Firm)

  • Kate Vitasek

    (University of Tennessee at Knoxville)

  • Jim Bergman

    (Commercial Officers Group, Inc)

  • Tim Cummins

    (World Commerce & Contracting)

Abstract

This book has addressed contracts as a social and economic phenomenon, enabling their scientific study. In this final chapter, the world of contract law is visited, which requires a different lens and set of questions. This chapter addresses the primary legal considerations of Relational Contracts. In relational contracting, it is important to combine the basics of contract law with the doctrine of good faith. The concept of good faith is frustrating to many, as the exact legal function and definition are vague. To make matters worse, the function and meaning vary across jurisdictions and philosophy of use. Some clarity has arrived through a recent UK case known as Alan Bates and Others vs. Post Office Limited. The overall impact of the Bates case is that a high-level court has concluded that Relational Contracts are enforceable, and can be defined through a litany of attributes. Thanks to the opinion written in the Bates case, it is now easier to understand what is meant by a relational contract.

Suggested Citation

  • David Frydlinger & Kate Vitasek & Jim Bergman & Tim Cummins, 2021. "Legal Considerations of Relational Contracts," Springer Books, in: Contracting in the New Economy, edition 1, chapter 0, pages 261-275, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-65099-5_17
    DOI: 10.1007/978-3-030-65099-5_17
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