This blog was co-authored by Adrienne Hendricks, Trainee Associate and Adriaan Lourens, Candidate Attorney.

The Supreme Court of Appeal recently reaffirmed the principle that a contracting party exercising unilateral discretion must do so in good faith, with reasonable judgment, and without arbitrariness (the arbitrio boni viri principle).

A major retail franchisor and its franchisee entered

In this judgement, the English high court decided that the insurer was entitled to avoid an employer’s liability insurance policy on grounds of material non-disclosure and misrepresentation.  The insurers had shown that the facts misrepresented or not disclosed would have influenced the mind of a reasonably prudent underwriter in exercising their underwriting judgment as