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Financial Services Quarterly
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2002 ISDA Master Agreement: what constitutes good faith and reasonableness?
Megan O'Rourke, Australian Banking and Finance Law Bulletin, October 2003
This article considers how the terms "good faith" and "use commercially reasonable procedures in order to produce a commercially reasonable result", in the context of determining the Close-out Amount under the 2002 ISDA Master Agreement, could be interpreted under the laws of Australia.
The author concludes that both objective and subjective conduct is required in determining this amount - the objective requirement being that the relevant party must use commercially reasonable procedures and the subjective requirement being that the relevant party must act in good faith.
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For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.
Disclaimer
This publication is necessarily brief and general in nature. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
