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International Construction Law Review

WHAT ARE “BEST ENDEAVOURS”?

JULIAN BAILEY

Solicitor, CMS Cameron McKenna, London

I. INTRODUCTION

What is the purpose of a “best endeavours” clause in a contract? Its purpose is not to impose an obligation to achieve a particular objective. The purpose is to require a party to “do their best” towards achieving that objective. If the objective is not achieved, that does not of itself mean that the relevant obligor is in breach of his or her best endeavours obligation. It is only if the objective was not achieved because the person did not use his or her best endeavours that there will be a breach.
Best endeavours clauses are used in construction contracts where there is some doubt about the ability of one party to achieve a particular objective. The doubt may exist, for example, because the objective cannot be achieved unless a third party beyond the obligor’s control does something. For instance, an owner may want to obtain the benefit of supplier warranties from subcontractors. However, the owner does not deal with the subcontractors, so it is unable to obtain the warranties itself. The main contractor, though, is in a position to obtain these warranties, because it deals with the subcontractors. But the main contractor may be unable to guarantee that it can obtain subcontractor warranties. Some subcontractors may not offer warranties on suitable terms, and others may not even offer them at all. The main contractor, therefore, may simply agree to use its best endeavours to procure warranties for the benefit of the owner, because that is the most that the main contractor can promise in the circumstances.1
Best endeavours clauses are used in other commercial contexts, such as the development of a business or the development of intellectual property. Best endeavours provisions are used in these instances not only because there is uncertainty over whether a particular objective can be achieved, but because there is uncertainty over precisely what the ultimate objective is. For example, a contractual licence to work a patent may be accompanied by an obligation on the licensee’s part to use its best endeavours to develop and promote the sale of the patented article.2 There may not be a definite objective, such as


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The International Construction Law Review

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