A contractual termination power expressed as exercisable in the seller's 'absolute discretion' may nonetheless be subject to an implied term requiring the power to be exercised reasonably and in good faith, where the implied term controls the exercise of the power rather than the assessment underlying it. The BP Refinery criteria for implication in fact are the appropriate framework for evaluating such implied limitations. On the current state of Australian authority, implication as a matter of law of a general good faith obligation in commercial contracts has not been established.
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