Relational contracting and the duty of good faith: Divergent judicial pathways in the UK and the US

IMPACT: For senior public managers, procurement officers, contract administrators, and government legal teams navigating the tension between legal compliance and collaborative partnerships, this article offers a critical roadmap. Courts in the UK and the US are charting fundamentally different paths on the duty of good faith—paths that directly determine whether relational contracts will be enforced or undermined if a dispute arises. Examining key cases in both jurisdictions, the authors identify four distinct judicial models shaping how legal risk, accountability, and flexibility to innovate are distributed. Whether operating in a ‘high bar’ jurisdiction requiring exhaustive specifications or a ‘contextual’ one where co-operation clauses carry weight, understanding these models is essential at every level of government. Misreading the judicial environment invites contract failure, wasted public funds, and eroded trust. Contracting strategies should therefore be aligned with the legal realities that govern them.