Washington
How Bloor v. Falstaff Brewing Corp. applies in Washington: state-specific rules, key cases, and bar exam notes for Other.
In Washington, the principles from Bloor v. Falstaff Brewing Corp. are applied in cases involving breach of contract and implied covenant of good faith. Courts tend to honor the contractual agreements while also evaluating the intent behind the parties’ actions and ensuring fairness in their dealings.
The specific rule as applied in Washington states that parties to a contract are bound to perform their contractual obligations in good faith, even in circumstances where the contract gives them discretion in their performance.
This case held that the implied duty of good faith and fair dealing cannot be disregarded even when the terms of a contract appear to give unilateral discretion.
The court affirmed that the duty of good faith applies to all contractual agreements, emphasizing the necessity of fair dealing between contracting parties.
This decision established that when one party exercises discretion in a contract, they must do so in a manner consistent with the overarching duty of good faith.
Washington's application of the principles from Bloor aligns closely with the federal standard under the UCC, which also emphasizes the duty of good faith in commercial transactions. However, Washington courts have developed a more extensive body of case law that interprets this duty as encompassing broader aspects of fair dealing.
Washington bar exam questions often address issues surrounding contract law, including the implied covenant of good faith and fair dealing, thereby making these principles relevant for test-takers.