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27 July 2012 / Joanne Keillor , Caroline Kehoe
Issue: 7524 / Categories: Features , Commercial
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In it for the long haul?

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Caroline Kehoe & Joanne Keillor examine the consequences of an endeavours obligation on a long term contract

“Parties should approach an endeavours obligation contained within a long-term contract with particular caution”

What are the implications of an endeavours obligation in a long-term contract? What happens if the commercial circumstances change, such that it is no longer desirable for a party to continue to perform a contract in the same way it has been performed initially? Can the party limit or abandon its performance because it would otherwise incur a loss?

These issues arose in the case of Jet2.com Limited v Blackpool Airport Limited [2012] EWCA Civ 417, [2012] All ER (D) 24 (Apr) where the Court of Appeal found, by a majority, that Blackpool’s obligation to use best endeavours to promote Jet2’s low-cost services gave rise to an enforceable obligation to operate outside normal opening hours, as this was essential to Jet2’s business model. Blackpool could not escape this obligation on the basis that to comply would be

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MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

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The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
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