What should I do about my endeavours clause?
When drafting a contract, it makes sense to plan ahead for the unexpected. Many of the contracts we have been drafting recently have included an 'Endeavours Clause’. It is not uncommon for contracts to include an Endeavours Clause. Including this clause lays the responsibility on the parties to make every effort to achieve a particular result. Normally, the result is the mission between the parties to make best, reasonable or all reasonable efforts to follow the agreed upon target and to make sure it is achieved. On YOU LEGAL TV, I explain what an 'Endeavours Clause' is and how it can be useful in a contract. You can also learn more about Endeavours Clauses in our blog post on All Reasonable Endeavours: What Are You Obliged to Do? .
See below for the complete transcript of this episode -
Hi. My name's Sarah Bartholomeusz, and welcome to You Legal TV.
At You Legal, we help leaders in growing companies make bold decisions in their businesses. We also spend a lot of time drafting contracts, and we find that many of those contracts include an endeavors clause.
What is an endeavors clause, I hear you say? Well, the answer is that it's either obliging each party or one party or the other to use their best endeavors or reasonable endeavors in the case that something in the contract doesn't go according to plan.
What does it mean? One thing that is sometimes recommended is that before the parties sign the contracts, those best endeavors be set out more clearly so that the parties agree on what best endeavors will actually mean because it's a subjective clause.
However, courts have also recently held that a party shouldn't be obliged to comply with an endeavors clause to its financial detriment.
So, if you have a question about a specific clause or want to chat with us generally about another commercial matter, give me a call or shoot me an email. I look forward to seeing you on the next episode of You Legal TV.
What Should I Do Next?
Contact us if you would like further legal advice about Contracts. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action regarding any specific issues.