Comparative Study on Principles of Good Faith and Fair Dealing in Contract Laws of the United States of America and Bhutan

Good faith is an abstract concept, yet the existence and importance of good faith in contracts is undeniable. This paper discusses the relevance of good faith in the context of Bhutan where, despite being a society built on the basis of honesty and fairness, the first modern Bhutanese contract law does not contain the concept of good faith. After a thorough review of Bhutanese judicial decisions, and the nation's development principle of Gross National Happiness (GNH), this paper makes the recommendation that the concept of good faith be re-applied into Bhutanese contract law. Recommendations are drawn after contrasting the Bhutanese context with the time-tested experience of the United States and its application of good faith in contracts. Through this discourse, the paper will provide a brief introduction to the Bhutanese legal system, its origins of good faith, unique policies, and legal practices