6.1 A Good Faith Standard within the Context of Broad Fiduciary Duty
Historically, the common law of trusts and the principles of equity did not look to contract law when applying a good faith standard to trustees. Instead, courts have consistently applied a good faith standard within the context of a broad fiduciary duty of loyalty. The insurgent theory (advanced in academic debates and largely adopted by the new uniform partnership acts) to reduce fiduciary relationships to mere contract, to the morals of the market place, may be attractive to scholars of an economic bent, but it provides a poor substitute for the common law rules governing trustee conduct. Good faith under the law of contract is a concept devoid of the normative values that historically governed trustee conduct and those minimalistic standards should not be incorporated in the law of trusts.