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09 October 2008
Issue: 7340 / Categories: Features , Commercial
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Best endeavours?

What's reasonable and what's best? By Sara Partington and Kirk Page

 

 

Commercial contracts will often include the requirement to use “best” or “reasonable” endeavours to act in a certain manner or to effect a particular action or result; such a requirement will limit or define a party's contractual obligations. Despite the regularity in which these clauses are used, neither has an exact legal definition—every lawyer or commercial man knows that “reasonableness” is difficult to define exactly and is inherently fact-specific.

However, the High Court's judgments in Rhodia International Holdings Ltd v Huntsman International LLC [2007] EWHC 292 (Comm), [2007] All ER (D) 264 (Feb) and Ryanair Ltd v SR Technics Ireland Ltd [2007] EWHC 3089 (QB), [2007] All ER (D) 345 (Dec) should be borne in mind as providing some useful guidance, not only as to the distinction between these stated obligations, but also as to the extent to which a party will be expected to “sacrifice its own commercial interests” as a result of agreeing to perform to a specified standard.

The basic facts in Rhodia
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MOVERS & SHAKERS

Browne Jacobson—Caroline Barker & Tom Walker

Browne Jacobson—Caroline Barker & Tom Walker

Browne Jacobson recruits regulatory experts Caroline Barker and Tom Walker to bolster health, government and corporates practices

Jackson Lees Group—Paul Harrison, Helen Innes & Sorcha McMullan

Jackson Lees Group—Paul Harrison, Helen Innes & Sorcha McMullan

Partner and paralegals bolster clinical negligence team at Jackson Lees Group

Stone King—Manchester

Stone King—Manchester

Stone King triples Manchester footprint with office move as law firm’s rapid growth journey continues

NEWS
Lawyers have welcomed the Lord Chancellor’s reverse-ferret on jury reforms, but expressed ‘serious concerns’ about the decision to exclude fraud trials
From ‘rats in the robing room’ to ‘overworked’ judges and a shortage of court staff, barristers have aired their concerns about the state of the justice system
The use of agentic artificial intelligence (AI) poses ‘significant risks’ across the justice system, public services and government, and current regulation is ‘poorly suited’ to control it, experts have warned
The solicitors’ regulator has paused controversial plans to exclude owner-managers from compliance officer roles
The government has launched a £16m legal support grant to support 48 frontline legal advice organisations supporting people facing eviction, problem debt, benefit disputes and family breakdown
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