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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

Charles Russell Speechlys—James Paterson

Charles Russell Speechlys—James Paterson

Charles Russell Speechlys further bolsters Private Equity expertise with the appointment of James Paterson

Ellisons—Samuel Flower

Ellisons—Samuel Flower

Ellisons strengthens Rural Affairs team with senior appointment

Sidley—Carl Hotton

Sidley—Carl Hotton

Sidley adds insurance mergers and acquisitions partner to London office

NEWS
Consultant-led law firms should prepare for closer regulatory attention as oversight evolves
Artificial intelligence may draft workplace grievances, but employers cannot treat them any differently from conventional complaints
From dishonest claimants to judicial promotions and procedural skirmishes, the latest legal developments offer plenty for litigators to digest
Fresh guidance is set to influence how courts decide whether hearings take place online or in person
County Court judges remain divided over whether landlords can lawfully force entry to carry out essential safety inspections after tenants ignore access injunctions
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