CandleFocus Glossary Editor
What is Best Endeavours?
Best Endeavours refers to an obligation assumed by one party in a contract to use all effort within their power to fulfill and satisfy the terms of the agreement. It is a legal phrase that holds a party accountable to demonstrate that they are managing their reasonable duty in both negotiating and abiding by the contract agreement.
Best Endeavours can either be a ‘reasonable’ or ‘best’ standard of effort. For example, the ‘best’ standard of effort requires a party to use all reasonable efforts to achieve the desired outcome within both the contract’s timeframe and expectations. Whereas, the ‘reasonable’ standard of effort would require a party to use the most prudent approach to fulfill the terms of the agreement.
In terms of the term ‘best’, the legal framework of ‘best’ differs from jurisdiction to jurisdiction. In the United States, ‘best efforts’ is generally preferred to ‘best endeavours’. The two terms are technically equivalent and both impose a reasonable effort that cannot be avoided by one party in order to perform the contract’s obligations.
What is important to note however is that best endeavours are limited by a party in a contract to not take any act that can be deemed as self-damaging. This is to ensure that the party is not being tasked to perform something that results in financial loss or harm to them. However, if the party is requested to take affirmative action that would not harm the party taking those actions, then it may still be subject to best endeavours.
Finally, it is important to note that this type of agreement is usually relied upon in commercial or business matters. It is designed to ensure that all parties are bound to the same standard with regards to the contract’s performance, and thus avoid any dispute with regards to this performance at a later stage.
Overall, Best Endeavours is a legal phrase that requires a party to use all effort within their power to fulfill and satisfy the terms of the agreement. It is a ‘reasonable’ or ‘best’ standard of effort that allows parties to ensure that these terms are successfully met. This agreement is a practical and efficient way to avoid disputes with regards to the performance of the contract.
Best Endeavours refers to an obligation assumed by one party in a contract to use all effort within their power to fulfill and satisfy the terms of the agreement. It is a legal phrase that holds a party accountable to demonstrate that they are managing their reasonable duty in both negotiating and abiding by the contract agreement.
Best Endeavours can either be a ‘reasonable’ or ‘best’ standard of effort. For example, the ‘best’ standard of effort requires a party to use all reasonable efforts to achieve the desired outcome within both the contract’s timeframe and expectations. Whereas, the ‘reasonable’ standard of effort would require a party to use the most prudent approach to fulfill the terms of the agreement.
In terms of the term ‘best’, the legal framework of ‘best’ differs from jurisdiction to jurisdiction. In the United States, ‘best efforts’ is generally preferred to ‘best endeavours’. The two terms are technically equivalent and both impose a reasonable effort that cannot be avoided by one party in order to perform the contract’s obligations.
What is important to note however is that best endeavours are limited by a party in a contract to not take any act that can be deemed as self-damaging. This is to ensure that the party is not being tasked to perform something that results in financial loss or harm to them. However, if the party is requested to take affirmative action that would not harm the party taking those actions, then it may still be subject to best endeavours.
Finally, it is important to note that this type of agreement is usually relied upon in commercial or business matters. It is designed to ensure that all parties are bound to the same standard with regards to the contract’s performance, and thus avoid any dispute with regards to this performance at a later stage.
Overall, Best Endeavours is a legal phrase that requires a party to use all effort within their power to fulfill and satisfy the terms of the agreement. It is a ‘reasonable’ or ‘best’ standard of effort that allows parties to ensure that these terms are successfully met. This agreement is a practical and efficient way to avoid disputes with regards to the performance of the contract.