The Place of Good Faith in Production Sharing Contracts
Akhlāq-i zīstī i.e., Bioethics Journal,
Vol. 15 No. 40 (1404),
14 July 2025
,
Page 1-13
https://doi.org/10.22037/bioeth.v15i40.46721
Abstract
Background and Aim: Good faith as an ethical principle, along with the developments of human society and the development of complex social and commercial relationships of the people of the society, has been established in line with human standards, social justice and fairness. This study was conducted with the aim of examining the importance and status of good faith in Production Sharing Contracts.
Methods: This research is theoretical in nature and adopts a descriptive–analytical method, with data collection carried out through library research and consultation of legal texts.
Ethical Considerations: In the present study, the ethical aspects of library study, including the originality of the texts, honesty, and trustworthiness, have been observed.
Findings: The principle of good faith and the obligation to observe it hold a special significance in contract law and govern all stages of a contract, to the extent that the existence of mutual good faith may be regarded as the very framework of any contractual relationship. This principle likewise applies to production sharing agreements. One of the manifestations of compliance with the principle of good faith in production sharing contracts is the transfer of technology. In this context, technology refers to a set of knowledge, products, processes, tools, methods, and systems that are employed in the creation of goods or the provision of services. Contract law is one of the fields in which the principle of good faith, as a standard of customary and fair conduct, plays an active and effective role, and its observance is emphasized throughout all the different stages of the contractual process.
Conclusion: Although the observance of the principle of good faith constitutes a reciprocal obligation incumbent upon both parties to the contract, in this category of contracts, due to the lack of adequate legal safeguards and the insufficient protection and effective observance of intellectual property rights by the other party, the contractor, in practice, lacks the necessary willingness to transfer and make available technology to the host country.
- Good faith
- Technology
- Technology transfer
- Production Sharing Contracts
How to Cite
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