Locke v. Warner Bros., Inc.

Locke v. Warner Bros., Inc. - Where a contract confers on...

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Contracts 11/19 Implied Obligation of Good Faith Locke v. Warner Bros., Inc., 1997 Facts : Clint Eastwood and Sondra Locke were in a relationship. The relationship ended and he arranged a contract between Locke and Warner Bros. They would pay her a certain amount every year, and if they made any of her movies or asked her to produce, she would get extra. They never made any of her movies. She claims they never intended to and that they went into the agreement knowing they wouldn’t make any movies with her. She backed this up with witness testimony. Holding : WB violated implied obligation of good faith. Class Notes : Honest dissatisfaction = okay Not considering any of Locke’s projects = not okay
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Unformatted text preview: Where a contract confers on one party a discretionary power affecting the rights of the other, a duty is imposed to exercise that discretion in good faith and in accordance with fair dealing. It is settled that in every contract there is an implied covenant that neither party shall do anything which will have the effect of destroying or injuring the right of the other party to receive the fruits of the contract. Where the contract involves matters of fancy, taste, or judgment, the promisor is the sole judge of his satisfaction. If he asserts in good faith that he is not satisfied, there can be no inquiry into the reasonableness of his attitude....
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