Missouri
How Bloor v. Falstaff Brewing Corp. applies in Missouri: state-specific rules, key cases, and bar exam notes for Other.
Missouri law recognizes the principles of good faith and fair dealing similar to those identified in Bloor v. Falstaff Brewing Corp., particularly in the context of contractual relationships. The Missouri courts involve the covenant as inherent in commercial contracts, particularly focusing on the actions of parties pertaining to distribution agreements.
In Missouri, the duty of good faith and fair dealing requires that parties to a contract act in accordance with reasonable expectations and avoid undermining the contract's purpose, closely mirroring principles outlined in Bloor v. Falstaff Brewing Corp.
The Missouri Court of Appeals held that implied covenants in contracts require parties to exert efforts consistent with the object of the contract.
The court found that failure to comply with the expectations of cooperation and honesty constitutes a breach of the implied covenant of good faith and fair dealing.
The court confirmed that good faith obligations compel parties to avoid conduct that would benefit one party disproportionately at the expense of the other.
Missouri’s interpretation of the duty of good faith and fair dealing aligns closely with federal standards, particularly under contract law as reinforced by the Restatement (Second) of Contracts. However, Missouri courts may emphasize the practical implications and expectations of specific contract terms slightly differently than federal courts, focusing more on local industry practices.
When preparing for the Missouri bar exam, candidates should be familiar with the implications of Bloor v. Falstaff Brewing Corp. and related cases regarding the duty of good faith in contracts.