Good Faith Principles in International Business Contract Law

Abstract

This study aims to analyze the principles of good faith in international business contract law. The results showed that the principle of good faith is an honest transaction which has 3 main elements, namely: First, good faith and honest transactions as the basic principles underlying the contract; Second, the principles of good faith and honest transactions in the UPICCS (UNIDROIT Principles of International Commercial Contracts) emphasize the practice of international trade; Third, the principles of good faith and honest transactions are compelling. The objective is to encourage the application of the principles of good faith and fair dealing in all international commercial transactions. The manifestation of efforts to promote legal harmonization can be seen when contracts or national laws do not find the necessary rules, or there is a legal vacuum (gaps), so the principles of UNIDROIT (The International Institute for the Unification of Private Law) can be used as a reference.