Abstract/Summary

Recent developments in the construction of contracts have favoured a more literal approach to contractual language, and been hostile to the implication of words to fill perceived gaps in professionally drawn contracts. At the same time there has been renewed interest in the role of good faith in contract law. Until very recently the two topics had not been linked in the case law. The retreat towards literalism, or more kindly textualism, evidences a philosophy of contracting which is diametrically opposed to one which embraces objective standards of good faith and fair dealing. The two strands of development are analysed and the likely future direction of travel considered from a perspective which embraces a more contextual and common sense approach to contract law.