In New South Wales, a duty of good faith both in performing obligations and exercising rights may by implication be imposed upon parties as part of a contract, including a commercial lease. However, a property owner does not breach that duty by pressing for more stringent fire safety requirements where it considers council requirements insufficient. The covenant to keep premises in 'good and substantial repair' imposes both qualitative and quantitative obligations, requiring maintenance to the standard the building would have been in had good and substantial repair been undertaken throughout the lease term. An implied duty of good faith cannot override the express provisions of the contract.
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