Tip of the Week

Tip of the week from the Real Estate Asset Management Group
When have you done enough to satisfy an "all reasonable endeavours" obligation?
The High Court has recently examined this issue again and once again the news is not good.  The Judge held that when compliance was in the control of the party who was supposed to be using all reasonable endeavours to comply, then the phrase did extend to that party doing something that was not in its commercial interests.    In this case it meant that the airport had to keep open for an operator outside its normal operating hours even though it was losing money by doing so.

So beware - when you are agreeing to use "all reasonable endeavours" do you really mean this?  A reasonable endeavours obligation should do the job just as well and protect you from having to act against your own commercial interests.

Eleanor Richardson, Associate, Davies Arnold Cooper LLP, T 020 7293 4809