Abstract
This chapter delves into the nature of the pactum as both substantial and functional bond, as well as mythical canon of any contractual-constituting initiative in the public and private spheres. The aim is to show that the movement toward the conceptualisation of good faith as an organising principle and implied term in the Common law tradition is due to the need to counterbalance our inhuman condition as made manifest by the humanitarian façade of the modern constitutional project. This claim is supported by an unconventional method of investigation that will promote the comparison between the role of political action at the public level and the increasing utilisation of the doctrine of good faith in Contract law theory and practice.
This chapter is based on a paper presented at the Annual Conference of the UK Branch of the International Association for Philosophy of Law and Social Philosophy (IVR), held at the School of Law, Queen’s University Belfast, on 23 October 2015. The theme of the conference was Public/Private: Unlocking the Boundaries of Legal Thought. I wish to thank all those who provided me with valuable suggestions. I am particularly grateful to Oscar Roos for constructive comments on an earlier draft. Errors are mine only.
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- 1.
Siliquini-Cinelli and Hutchison (2016).
- 2.
- 3.
Supiot (2007), p. 83.
- 4.
Ibid., p. 84. See also Collins (1999), pp. 128–147.
- 5.
Supiot (2007), p. 85.
- 6.
Supiot (2007), p. 106.
- 7.
Cotterrell (2008), p. 175. (Emphasis in original).
- 8.
Ibid.
- 9.
Ibid., p. 176.
- 10.
Ibid.
- 11.
My approach to homo oeconomicus is purely philosophical. Given how often the term ‘self-determination’ is used to describe this form of conduct, it is expected that some commentators would not share this view. See Schütte, in this book.
- 12.
- 13.
Heidegger (1998a), p. 50.
- 14.
Supiot (2007), pp. 79–86.
- 15.
Both terms refer to the belief that governments should educate consumers and build or reform institutions to regulate economic activities according to rational global standards determined by outsiders.
- 16.
I use capital ‘C’ to refer to the Common law as a legal tradition. Common (with an uppercase c) law and common law are two different things: while the former is a legal tradition marked by a number of particular characteristics, the latter refers to only a part of the Common law (and includes elements of both case law and Customary law).
- 17.
[2014] SCC 71 (Supreme Court of Canada) and [2015] IEHC 547 (Irish High Court) respectively. The growing relevance of good faith in the Common law tradition may also be witnessed in the (not linear and at time inconsistent) developments of the subject in England, Australia, New Zealand, and Scotland (a mixed legal jurisdiction). Cf. Lymington Marina Ltd v MacNamara [2007] Bus LR Digest D29 (England and Wales Court of Appeal (Civil)); Socimer International Bank Ltd v Standard Bank London Ltd, [2008] 1 Lloyd’s Rep 558 (England and Wales Court of Appeal (Civil)); Yam Seng Pte Ltd v International Trade Corporation Ltd, [2013] EWHC 111 QB (England and Wales High Court (Queen’s Bench)); North East Solutions Pty Ltd v Masters Home Improvement Australia Pty Ltd [2016] VSC 1 (Supreme Court of Victoria); Pacioccio v Australia and New Zealand Banking Group Limited, [2015] FCAFC 50 (Federal Court of Australia); Mineralogy Pty Ltd v Sino Iron Pty Ltd, (No 6) [2015] FCA 825 (Federal Court of Australia); Commonwealth Bank of Australia v Barker [2014] HCA 32 (High Court of Australia); Bobux Marketing Ltd v Raynor Marketing Ltd, [2002] 1 NZLR 506 (Court of Appeal of New Zealand); Smith v Bank of Scotland, [1997] SC (HL) 111 (House of Lords).
It seems that the courts shared Martijn W. Hesselink’s conviction that ‘common law lawyers should not fear the concept of good faith.’ See Hesselink (2010), p. 648. Contra, arguing that good faith in the performance of contracts ‘is not a concept foreign to the common law’, see Allsop JC’s remarks in United Group Rail Services Ltd v Rail Corporation New South Wales, [2009] NSWCA 177, para 634 [58] (New South Wales Court of Appeal), and in Paciocco v Australia and New Zealand Banking Group Limited, cited above, para 287. To be compared to Bingham LJ’s statements in Interfoto Picture Library Ltd v StilettoVisual Programmes Ltd [1989] QB 433, paras 439 and 445. See also Lowly and Rawlings (2005), p. 83. See also Carter (2012), p. 22.
Given the scope of this contribution, in the following pages I will not deal with the content of these judgements, nor with their analytical repercussions. Suffice to say that in Bashin, before awarding to good faith the status of an organising principle ‘in order to make the common law less unsettled and piecemeal, more coherent and more just’ (at [33]), Cromwell J discussed the US scenario and endeavoured in a comparative enterprise among Common law jurisdictions to point out how, from the UK to the Australia, the doctrine of good faith has become increasingly important in recent years. Yet it would be prudent to set the US apart from comparable cases because of its well-known ‘exceptionalism’, which in Contract law assumes the form of the peculiar relationship between the Anglo component of its legal system as a whole and a code (the Uniform Commercial Code) in which, along with the doctrine of fair dealing, the duty to act in good faith is normativised. For a compelling account on the role that good faith and bad faith play in American Public law, see Pozen (2016).
- 18.
It should be clarified at this early stage that, contrary to Arendt, I conceive of the ‘will’ as a vital component of political action.
- 19.
Zumbansen (2012) and Goderis and Versteeg (2015). See Sects. 3 and 4, below.
Arendt’s insight into the vanishing of (legal and political) authority may be of assistance here. In her words, the loss of authority ‘is tantamount to the loss of the groundwork of the world, which indeed … has begun to shift, to change and transform itself with ever-increasing rapidity from one shape into another … ’. See Arendt (2006a), p. 95. See also ibid. p. 91, and (2006b), pp. 171–206. Yet some commentators might contend that this depends on how the transposition of constitutions to external arenas is historically interpreted. See Frankenberg (2012).
- 20.
Somek (2012), p. 58.
- 21.
Nail (2015), pp. 21–38.
- 22.
- 23.
Negri (2010), p. 217.
- 24.
Supiot (2007), pp. 83 and 103, correctly links the ‘weakening of the State’ brought about by the processes of ‘(re-)territorialization’ to the ideology of ‘contractualism’.
- 25.
The label ‘post-humanist’ refers to the need to protect and promote human values and Fundamental rights through politics and justice whilst at the same time neutralising humanism’s secular exclusions. The increase in inequality brought about by the (allegedly civilising) globalisation of trade is testament to this. See Rosanvallon (2013).
- 26.
Zumbansen (2007).
- 27.
- 28.
Ibid.
- 29.
Weiss and Hobson (1995).
- 30.
Gellner (1983).
- 31.
Thornhill (2012).
- 32.
O’Donoghue (2014).
- 33.
Loughlin (2003), pp. 93 and 80, respectively.
- 34.
Ibid., p. 78. From this it inevitably follows that the concept of constitutional pluralism is an oxymoron. See Loughlin (2014).
- 35.
Ibid., p. 83.
- 36.
Tierney (2008), p. 15.
- 37.
Agamben (2011a).
- 38.
- 39.
- 40.
Arendt (1973), p. 140. On this point, see also Franz Borkenau’s scholarship on Hobbes.
- 41.
- 42.
- 43.
- 44.
Arendt (1998), p. 68.
- 45.
Arendt (2006a), p. 147.
- 46.
Ibid. See also ibid. p. 153.
- 47.
Barbour (2013), p. 307. (Emphasis added).
- 48.
Arendt (1998), pp. 28 and 46.
- 49.
Arendt (1998), p. 53. See also Agamben (2005), pp. 95 and 106.
The table metaphor recalls Heidegger’s (otherwise very different) scholarship on the role of ‘nearness’ in every act of ‘ek-sistence’. In Heidegger’s words, ‘the human being, existing as a transcendence that exceeds in the direction of possibilities, is a creature of distance’. See Heidegger (1998b), p. 135.
- 50.
Agamben (1998), pp. 44–48.
- 51.
Cassirer (1946), pp. 163–75.
- 52.
The founding of dedicated law journals and book series, as well as the launch of new undergraduate and postgraduate courses in transnational and global law worldwide, are testament to this subject’s increasing relevance within legal discourse. For present purposes, in addition to Teubner’s scholarship on post-national societal constitutionalism, see Twining (2009), Kuo (2010), Handl et al. (2012), Dobner and Loughlin (2010), Walker (2012), Krisch (2010), Amhlaigh et al. (2013), Zumbansen (2013) and Helfand (2015). See also the (2008) 6(3)–(4) Special Issues of the International Journal of Constitutional Law on the symposium ‘Constitutionalism in an Era of Globalization and Privatization’, and the interview with Canada’s Prime Minister Justin Trudeau in the New York Times, in which Canada is defined as the ‘first post-national state’, Available at: http://www.nytimes.come/2015/12/13/magazine/trudeaus-canada-again.html?_r=0. Accessed 15 February 2016.
- 53.
MacPherson (1962), pp. 3, 22, 29, and 46.
- 54.
Agamben (1998), p. 105.
- 55.
Arendt (1973), p. 157.
- 56.
- 57.
Agamben (2012b), p. 4.
- 58.
D’Agostini (2014).
- 59.
- 60.
- 61.
Michaels (2015), p. 1.
- 62.
- 63.
Fletcher (1998), p. 695.
- 64.
- 65.
- 66.
- 67.
Donlan (2014).
- 68.
- 69.
Pihlajämaki (2014), p. 121.
- 70.
Husa (2014).
- 71.
Örücü (2007), p. 43. A suggestion that seems to be supported by Cotterrell’s (at times ambiguous) belief that Comparative law’s and legal sociology’s ‘most general and most scientific projects—to understand law in its development and its variety as an aspect of social life—are identical’ see Cotterrell (2003), p. 134.
- 72.
Millns (2014), p. 285.
- 73.
Samuel (1998, 2011, 2014a, b).
- 74.
Örücü (2007), p. 58.
- 75.
- 76.
Smits (2006), p. xvii.
- 77.
- 78.
Dedek and Van Praagh (2015), p. xv.
- 79.
Örücü (2007), p. 48.
- 80.
Adams and Bomhoff (2012), p. 4.
- 81.
- 82.
- 83.
Although in a different way, Heidegger put forward this argument throughout his scholarship. See paragraphs 12–13 of Being and Time, as well as On the Essence of Truth, Letter on Humanism, The Thing, The Age of World Picture, Introduction to Metaphysics, What is Called Thinking?, Identity and Difference, Discourse on Thinking, The Nature of Language, The Question Concerning Technology, and Modern Science, Metaphysics, and Mathematics.
- 84.
Heidegger (2008), p. 88. See also ibid., p. 237.
- 85.
Heidegger (2014), p. 24. See also ibid., pp. 15, 23–24, 33, 49, and 189.
- 86.
Cassirer (1944), p. 208. See also ibid., pp. 29, 34, 60, and 73.
- 87.
- 88.
Cassirer (1957), p. 47. Cotterrell’s notion of ‘cognitive experience’ is in line with this form of perceptive knowledge.
- 89.
Cassirer (1946), p. 45.
- 90.
See, in particular, Cassirer (1996), pp. 194–200.
- 91.
Cassirer (2000), p. 102.
- 92.
- 93.
Cassirer (1996), p. 193.
- 94.
Cassirer (1946), p. 45.
- 95.
Cassirer (1944), p. 57.
- 96.
- 97.
Cassirer (1996), p. 217.
- 98.
Cassirer (1955a), p. 73.
- 99.
Agamben (2007b), p. 18.
- 100.
Ibid. p. 20. Cassirer also writes that ‘[i]n the objective content of science individual features are forgotten and effaced, for one of the principal aims of scientific thought is the elimination of all personal and anthropomorphic elements. See Cassirer (1944), pp. 1–22, 207–221, and 228.
- 101.
Ibid., p. 121.
- 102.
- 103.
Agamben (2007b), p. 22.
- 104.
Cassirer (1944), pp. 21 and 13 respectively.
- 105.
Agamben (2007b), p. 21.
- 106.
Ibid., p. 20.
- 107.
Cassirer (1955b), p. 44.
- 108.
- 109.
Cassirer (1944), p. 207.
- 110.
Cassirer (1955b), pp. 30–33.
- 111.
- 112.
- 113.
Pocock (1989), p. 165. The ‘knowledge-experience’ antithesis is particularly emphasised in Behemoth as well (1990), pp. xvi–xviii.
- 114.
Pocock (1989), p. 165. See also ibid., pp. 165–66.
- 115.
- 116.
See what Holmes argues in his Introduction to Hobbes' Behemoth (1990), p. xi.
- 117.
On this point, see Kant’s Metaphysics of Morals and Benjamin’s Capitalism as Religion.
- 118.
Krisch (2010), p. 18.
- 119.
Pocock (1989), p. 166.
- 120.
In different terms, see Schiavone (2012), pp. 123–125.
- 121.
- 122.
Arendt (1973), p. 149.
- 123.
Ibid., p. 139.
- 124.
Ibid., p. 126.
- 125.
Arendt (1998), pp. 139 and 299–300.
- 126.
Schmitt (2007), p. 19.
- 127.
Cf. Art. 1337 Civil code.
- 128.
See, respectively, Culpa in Contrahendo der Schadensersatz bei nichtigen oder nicht zur Perfection gelangten Verträgen, in Jahrbücher für die Dogmatik des heutigen röminschen und deutschen Privatrechts, IV.1; Dei Periodi Precontrattuali e della loro vera ed esatta costruzione scientifica, in Studi Giuridici in Onore di Carlo Fadda, III, 271. In particular, Fagella showed the importance of distinguishing three different periods of good faith (the period before any offer has been drafted; the period during which an offer is drafted; the period when the offer has been made). Cf. Saleilles (1907).
- 129.
Betti (1953), p. 90.
- 130.
Hamson (1938), p. 234.
- 131.
Supiot (2007), p. 103.
- 132.
Cf. Schiavone (2012), pp. 145–153 and 221–224.
- 133.
On this point, see George Williams’ scholarship on Human Rights protection.
- 134.
In Pacioccio v Australia and New Zealand Banking Group Limited, quoted above, Allsop CJ described good faith as a ‘normative standard’ and further maintained that ‘it is a good example of the presence of values in the common law’, at paras 290 and 287 respectively. His Honour also described good faith ‘as an implication or feature of Australian contract law attending the performance of the bargain and its construction and implied content’, at para 287. The lead on this issue was taken in the early 1990s by the New South Wales Court of Appeal, followed by the Victorian Court of Appeal and the Federal Court. The debate about the existence of an implied contractual obligation of good faith tends to be accompanied by that about the effective purview of its content (i.e., reasonableness, fair dealing, etc.) and the existence of fiduciary obligations. Recently, cf. Mineralogy Pty Ltd v Sino Iron Pty Ltd (No 6), [2015] FCA 825 (Federal Court of Australia), paras 998–1019.
- 135.
Teubner (1998), p. 11. To be compared with the more recent developments quoted at the beginning of this chapter.
- 136.
Costigan and Thomas (2005), p. 51. But see also du Bois’ contribution to this book, arguing the Human Rights Act has had very little impact thus far on the law of contract.
- 137.
- 138.
Cassirer (2000), p. 3.
- 139.
- 140.
Cassirer (1955b), p. 3.
- 141.
Ibid., p. 48. (Emphasis added).
- 142.
Ibid., p. 85. (Emphasis added).
- 143.
Agamben (2011b), p. 27. (Emphasis added).
- 144.
Straume and Humphrey (2011).
- 145.
Ibid., p. 72.
- 146.
Kant (1997), p. 54.
- 147.
Besson (2013), p. 341.
- 148.
Ibid., p. 345.
- 149.
Ibid.
- 150.
Ibid., p. 346. (Emphasis added).
- 151.
Kahn (2012), p. 127.
- 152.
Arendt (2003), pp. 68 and 70–72.
- 153.
Arendt (1978), p. 63.
- 154.
Kahn (2010), p. 59.
- 155.
- 156.
Agamben (2013b), p. 114.
- 157.
Ibid., p. 118.
- 158.
Ibid., p. 129.
- 159.
See Caputo (2001), pp. 42–43: what we are standing before here is the ‘“thinking thing” fully in charge of its potencies and possibilities, surveying the contents of its mind to sort out which among them represents something objective out there in the external world and which should be written off as merely internal and subjective’ (emphases added). Cf. Arendt (1978), p. 86.
- 160.
Agamben (2013b), p. 114.
- 161.
The inequality of bargaining power and the fact that commercial interests do not necessarily need to be sacrificed on the altar of good faith are of course different issues from those discussed here. As Consumer law and unconscionable conduct regimes, broadly understood, make clear, what is relevant in the courtroom is the modality through which this power is exercised and the reasons why it is exercised that way.
- 162.
Besson (2013), p. 346.
- 163.
Joo (2013), p. 64.
- 164.
The use of Heidegger at this stage of our inquiry requires prudence because of his commitment to fighting the metaphysical tradition of subjectivity which, as set out in Besinnung, he believed culminated in the ‘modern historical animal’. Yet in The Fundamental Concepts of Metaphysics, Heidegger clearly distinguished between human comportment as acting and doing, and animal behaviour as a disinhibited, captivated form of conduct, which confirms the appropriateness of his scholarship for the purposes of our discussion. Attention should also be paid to Heidegger’s peculiar use of the ‘will’ in the lectures on Nietzsche that he gave between 1936 and 1940, that is, in the years of his much-discussed ‘reversal’. I particularly refer to the first and second Volumes of Nietzsche, in which Heidegger’s decisionism is prominent, as it is in his lectures and writings of the 1940s such as Basic Concepts. More specifically, to Heidegger, decision (Entscheidung) is the fundamental act of self-appropriation (Selbstbehauptung). Thinking, which becomes the central topic of Heidegger’s later works, is the most powerful expression of this event (Ereignis) as he himself describes it. Finally, the role that Heidegger gives to the ‘decisive essence of willing’ towards our ‘open resoluteness’ in his Introduction to Metaphysics, published in 1953, is in line with that which he expounded in Being and Time, published in 1927. His admiration for Paul, the founder of the faculty of the will, is therefore less surprising than it might first appear.
- 165.
Heidegger (2008), pp. 163, 175, 232 and 238–39. See also ibid. pp. 40, 237, 386, and 470. Agamben has recently contended that ‘[t]o the primacy [that Heidegger confers on] care over use corresponds, in the second division of [Being and Time], the primacy of temporality over spatiality’. If that is the case, it would prove worthwhile to ascertain whether the contractual notion of good faith shares some elements—and if so, which ones, why, and to what extent—with Heidegger’s conception of care as ‘the fundamental structure of Dasein’. See Agamben (2016), pp. 43 and 38 respectively.
- 166.
Heidegger (2008), pp. 372, 236, and 386.
- 167.
‘Kant’s blindness’, Agamben writes, ‘is not to have seen that, in the society that was arising with the industrial revolution, in which human beings had been subjected to forces that they could not in any way control, the morality of duty would habituate them to consider obedience to a command … an act of freedom’. See Agamben (2013b), p. 123.
- 168.
Agamben (1999), p. 135.
- 169.
Agamben (2013b), p. 124. Agamben clarifies that even though Kant ‘believed himself to have secured … the possibility of metaphysics and to have founded, at the same time, an ethics that was neither juridical nor religious[, his] ontology is in truth an ontology of command [in which] the guarantee of the effectiveness of duty is … the law’. See Agamben (2013b), pp. 122, 123, and 112 respectively. See also Agamben (2004), pp. 49–92.
- 170.
Agamben’s quotation of Arendt’s evaluation of Kant’s influence over Eichmann’s behaviour is fundamental. See Agamben (2013b), p. 123. Cf. also Heidegger (1995), pp. 232 and 240, where human comportment is defined as ‘acting and doing’, and animal behaviour as ‘being driven forward’ by stimuli that captivate the subject’s existence.
- 171.
Caputo (2001), p. 49.
- 172.
- 173.
Bernd (2015).
- 174.
Kelsen (1957), p. 215.
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Siliquini-Cinelli, L. (2017). Reflections on the Pactum in the Public and Private Spheres. In: Siliquini-Cinelli, L., Hutchison, A. (eds) The Constitutional Dimension of Contract Law. Springer, Cham. https://doi.org/10.1007/978-3-319-49843-0_11
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