AGS 0.00% 17.5¢ alliance resources limited

judgement day, page-262

  1. 3gb
    963 Posts.
    "In contract law, the implied covenant of good faith is a general presumption that the parties to a contract will deal with each other honestly and fairly, so as not to destroy the right of the other party or parties to receive the benefits of the contract".

    Alliance and Heathgate were in a JV. I dont know the details of what AGS is saying was misleading and deceptive but assume a large part of it concerned prospectivity. From what I hear Heathgate is saying the information they with held wouldnt have had a significant effect on AGS renewing the JV or its terms. Therefore they didnt prevent AGS receiving the benefits of the contract and so they didnt breach good faith. It is up to AGS to prove being denied the exploration details had serious consequences for them. Usually in law the more serious the offence the greater the punishment. Has Heathgate done enough to justify losing there share of the mine?, AGS is saying it did.

    If AGS does win 100% there is a lightly hood Heathgate will appeal and we will face more years of litigation.
 
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