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Wastech:
Confirms that the duty to exercise
discretionary contractual powers in good faith, like the duty of
honest contractual performance, applies to all contracts and cannot
be excluded by the parties;
Clarifies that the duty is breached
where a party exercises a contractual power unreasonably , meaning in a manner not connected to the
underlying purposes for which the discretion is granted;
Mandates that when ascertaining
whether an exercise of discretion is unreasonable, and therefore a
breach of the duty, the court must interpret the contract (the first source of justice between the parties ) as a
whole. The content of the duty is guided by the intentions of