The recent decision of the Court of Appeal in Petromec v Petroleo Brasileiro considered the enforceability of a duty to conduct commercial negotiations in good faith. In reaching its decision on other grounds, the Court distinguished the leading House of Lords authority in Walford & Ors v Miles & Anor on the point. It is hoped that future rulings on this issue will further clarify the extent to which obligations to negotiate in good faith may be enforceable.
The case concerned an agreement under which the claimant contracted to upgrade the world’s largest offshore oil production platform so that it would be technically suitable for deployment in the Roncador oil field, off the Brazilian coast.
