The English High Court has stated that an obligation of good faith in a loan agreement implied an obligation to disclose material facts in Horn v Commercial Acceptances Ltd.

The claimant (Horn) had provided top-up finance to the defender, Commercial Acceptances Limited, a provider of short-term bridging finance. The defender had failed to disclose to the claimant that it was not funding the full balance of the lending, but was in fact only providing half and borrowing the balance from a third party.  This was a material fact which should have been disclosed, given the obligation of good faith and there was no need for proof of dishonesty to establish a breach of that obligation.