CO-OPERATION AND PREVENTION IN CONTRACT LAW.

Under Australian law, the requirement that parties to a contract must co-operate with each other manifests in at least four distinct duties or standards: (i) each party must co-operate in performing acts reasonably necessary to achieve contractual objectives; (ii) each party must not prevent or delay the other party in performing the contract; (iii) each party must do what is reasonably necessary to ensure that the other party enjoys the benefit of the contract; and (iv) each party must not undermine the purpose of any express promise that it has made. These duties and standards exist as default rules given effect, in most cases, as terms implied in law into all contracts. They are justified by the need to protect the bargain or exchange embodied by the contract — the performance interests of the parties. Hence, the scope of each duty or standard is defined through a normative assessment of what is necessary and appropriate in terms of protecting the bargain; the court strikes a balance between maintenance of the bargain and respect for the freedom of each party to act in self-interest. [ABSTRACT FROM AUTHOR]