Imagine a contract requires a party to achieve a desired but uncertain result. Completion of the contract depends upon the result happening. How hard do they have to try? What effort must they put in? What expense must they incur?

The amount of effort and expense required is often the subject of debate when such a contract is drafted. The most commonly used contractual expressions require the use of "best endeavours" or "all reasonable endeavours" or "reasonable endeavours" – in descending order of effort and expense.

"Best endeavours" requires the most effort and expense. The person under this obligation is expected to act in a determined way desiring the result although may act with prudence and reasonableness having regard to his own commercial interests. There may be an obligation to go to Court and/or through the appeal system to achieve the result – unless to do so would be unreasonable.

"Reasonable endeavours" requires the least effort and expense. The person under this obligation is entitled to take into account all relevant commercial considerations and weigh those against the obligation to the other party to the contract. Commercial considerations include cost, reputation and relationships. Court action to achieve the result is probably not required.

"All reasonable endeavours" is less often found in contracts and is sometimes used as a compromise where parties to a contract cannot agree on best endeavours or reasonable endeavours. The use of the word "all" may imply an obligation to use all available courses of action to achieve the result.

Other expressions used in contracts are "commercially reasonable endeavours", "reasonable commercial endeavours" and "utmost endeavours" but there is little guidance on what these mean.

The use of these expressions can help parties enter into a contract sooner than they might if they had to record every step to be taken and every expense to be incurred – assuming these could be predicted. It does mean, however, that the debate on these issues may merely be postponed if the desired result is not achieved and a spotlight is then turned on the unsuccessful efforts.

If you require any further advice or assistance please contact David Chapman on 01277 268348 or dchapman@wortleybyers.co.uk.

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