Bates and others v Post Office Ltd

Contract – Implied terms. The contracts formed between the defendant, the Post Office Ltd, and the claimants, (who were mostly sub-postmasters) were relational contracts, such that there had been an implied duty of good faith in the agreement(s) between the parties. It followed that the Post Office had not been entitled to act in a way that would be considered commercially unacceptable by reasonable and honest people. The Queen's Bench Division so ruled, among other things, in respect of a group litigation brought by the claimants, in circumstances where they had been held responsible for alleged shortfalls in their financial accounting with the Post Office, which they contended had been caused by problems with the way the Post Office's computerised system for accounting had operated.

Category: