INTRODUCTIONIn a contractual agreement, when parties are negotiating a contract, then they generallyhope to achieve a certainty as obligation. It provides them knowledge about how to exercise theirrights and reach to the consequences in case if contract is breached. The case of Burger KingCorporation v/s Hungry Jack’s Pty Limited (2001) 69 NSWLR 558, presented an opportunity toanalyse the NSW Court's decisions of Appeal, to imply a term of good faith. The appellant(Burger King) here, is a franchisor of second largest food chain after McDonald's in the world.While the respondent (Hungry Jack), is largest and sole franchisee in Australia, has used its ownname for franchising its stores instead of Burger King after signed a contract for a term of 15years. An action here is taken by franchisee (appellant) against its franchisor (respondent) for thelatter’s alleged wrongful termination of the agreement that both are signed with breach of certainterms. These terms were successful at initial period and substantial damages were also awardedto it. The appellant appealed against the trial judge’s findings as to both its contractual liabilityand the quantification of damages. With this regard, amongst various issues raised on the givenappeal was the existence as well as scope of implied provisions of good faith and reasonablenessin a commercial contract. Hereby, NSW Court of Appeal has found an implied term of good faith and reasonablenesson certain clause. This article is going to consider some relevant theories as Classical ContractTheory, Neo-Classical and more, to identify if decision taken by court is consistent or not. Forthis purpose, some arguments have been made to provides better support to given question i.e.whether decision of court implied a term of good faith or not.Case StudyBoth Burger King Corporation and Hungry Jack’s Pty Ltd. conducts, worldwide, afranchised fast food system. Hereby, Burger King is considered as the second largest fast foodchains in the world. It has near about 9,000 restaurants that runs worldwide via uniform franchisesystem. Along with this, it also operates a small proportion of restaurants by itself as well. WhileHungry Jack is the first solo franchisee of Australia and mad first formal franchise agreementwith Burger King Corporation in the year 1 June 1973, however, till that period there were nearly14 restaurants already operating under its name by using the Burger King Corporation system1

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