The duty of good faith is a principle that has formed the foundation of society as we know and the basis of agreements across cultures and nations for centuries. In a South African context, the duty of good faith can be widely understood to encompass the principle of Ubuntu which informs the fundamental ideals embodied in our Constitution. Therefore, the duty to contract being recognised as an underlying principle in the South African law of contract is only natural. However, did the SCA judgment in Capitec Bank Holdings Ltd and Another v Coral Lagoon Investments 194 (Pty) Ltd and Others [1] (“Capitec Holdings”) reiterate the idiom “every rule has an exception”? This article aims to explore the decision in Capitec Holdings and its effect on the interpretation and application of the duty to contract in good faith.
