Document Type
Article
Abstract
This article explores the role of the principle of good faith in enhancing commercial efficiency within Brazilian, Italian and U.S. legal systems. The principle, recognized under Brazilian Civil Law since the enactment of the 2002 Civil Code, is compared with its application under U.S. law, particularly through the Uniform Commercial Code (UCC) and Restatement (Second) of Contracts, and under Italian Civil Code. The study analyzes how good faith, as an objective legal standard, fosters contractual fairness, transparency, and predictability, thereby contributing to a more structured and efficient market. By examining case law, scholarly perspectives, and the interaction between traditional and modern contractual principles, the article argues for the integration of good faith as a tool to balance party autonomy with legal interventions aimed at promoting equitable contractual relationships. Ultimately, the article advocates for the simultaneous application of classical and contemporary contractual principles to achieve both individual freedom and collective market growth.
Recommended Citation
Cavalcante, Victor Caminha
(2024)
"Good Faith as Mechanism for an Efficient Market,"
South Carolina Journal of International Law and Business: Vol. 21:
Iss.
1, Article 3.
Available at:
https://scholarcommons.sc.edu/scjilb/vol21/iss1/3
