Guide to the meanings of "Endeavours" as used in commercial contracts.
In commercial agreements, the expressions "reasonable endeavours," "all reasonable endeavours," and "best endeavours" play a crucial role in defining the extent of effort and diligence required from parties to fulfil their contractual obligations. These terms are pivotal because they provide a framework for performance expectations without imposing absolute obligations, which can be impractical or overly burdensome. Contracting parties usually have a polarised approach to ‘endeavours’ terms, with one party seeking to impose the most onerous form of the obligation on the other party, and the other party trying to resist it. The final position is usually reached following negotiation and often represents a compromise where one party has argued that it is not reasonable for it to be placed under an absolute obligation. Understanding the nuances between these three expressions helps businesses negotiate and agree on terms that balance commitment with flexibility, manage risks effectively, and avoid potential disputes over contractual performance. This guide aims to explain the meanings and implications of these key terms in commercial contracts, providing clarity and practical examples to aid in their application and interpretation in commercial contracts.
Note: This publication does not necessarily deal with every important topic, nor cover every aspect of the topics with which it deals. Templates do not include or provide legal or other advice to users. They are designed to provide a head-start to the development of a commercial agreement and are not the finished article. They require careful reading, analysis and customisation in order to meet the particular needs of the parties to the document.
All templates and other documents downloaded from this website are subject to our Terms of Sale.
Any enquiries about this document can be directed to info@contracts-direct.com.
Publisher: Atkins-Shield Ltd: Company No. 11638521
Registered Office: 71-75, Shelton Street, Covent Garden, London, WC2H 9JQ
E&OE
Atkins-Shield Ltd © 2024