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13 October 2011 / Caroline Kehoe
Issue: 7485 / Categories: Features , Procedure & practice
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Coming to terms

Caroline Kehoe deciphers the meaning of “reasonable endeavours” & “good faith”

Where it is not appropriate to impose an absolute contractual obligation two terms frequently bandied about during negotiations are “reasonable endeavours” and “good faith” but a good deal of uncertainty remains as to what each means in practice.

Endeavours clauses

Before agreeing to any particular terminology it is important to know what the obligation you are committing to really means—what would amount to a breach? The wealth of case law gives some insight but ultimately each case depends on its own facts. In the most recent case, Jet2.Com Limited v Blackpool Airport Limited [2011] EWHC 1529, [2011] All ER (D) 06 (Jul), Mackie J said: “The meaning of the expression remains a question of construction not of extrapolation from other cases…the expression will not always mean the same thing.”

The lowest hurdle

A “reasonable endeavours” clause is defined by reference to an objective standard of what an ordinary competent person might do in the same circumstances (The Talisman [1989] 1 Lloyd’s

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MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

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Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

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Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Should a conviction stand when a later ruling reveals that the law underpinning it was wrong? The answer exposes a clash between finality and justice
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
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