What is the difference between reasonable and commercially reasonable?

Reasonable efforts: still weaker standard, not requiring any action beyond what is typical under the circumstances. Commercially reasonable efforts: not requiring a party to take any action that would be commercially detrimental, including the expenditure of material unanticipated amounts or management time.

What does commercially reasonable Endeavours mean?

An obligation to use ‘reasonable endeavours’ generally means that a party should adopt and pursue a reasonable course of action in order to achieve the desired result, bearing in mind its own commercial interests and the likelihood of success.

What is commercially reasonable effort?

One decision interpreted “commercially reasonable efforts” as requiring at the very least some conscious exertion to accomplish the agreed goal, but something less than a degree of efforts that jeopardizes a party’s business interests.

What is commercially reasonable discretion?

Commercially Reasonable means any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known, or which in the exercise of due diligence, should have been known, at the time the decision was made, would have been expected in the industry to accomplish the desired result …

What does every reasonable effort mean?

All reasonable efforts means prompt, substantial and persistent efforts as a prudent Person desirous of achieving a result would use in similar circumstances; provided that Sellers or Buyer, as applicable, shall be required to expend only such resources as are commercially reasonable in the applicable circumstances.

What are commercial Endeavours?

Best Commercial Endeavours means, in respect of a Party doing any act or thing or signing or executing any document or instrument, using all means reasonably necessary or desirable to do such act or thing or sign or execute such document or instrument.

What is the difference between best Endeavours and reasonable Endeavours?

Whilst it largely depends on the context, during contract negotiations, an obligor should generally push for a “reasonable endeavours” obligation, whereas the party who is the beneficiary of the obligation should seek to agree a “best endeavours” obligation, as it is in that party’s interest for the obligor to achieve …

What does best reasonable efforts mean in a contract?

This implies all possible actions that would be taken by a reasonable person who wishes to achieve a similar result in such circumstances. In other words, the party making the commitment to “best endeavours” should take appropriate actions, even if they are, to some extent, detrimental to its own interests.

What does reasonable effort mean?

Reasonable Efforts means, with respect to an action required to be attempted or taken by a Party under this Agreement, efforts that are timely and consistent with Good Utility Practice and are otherwise substantially equivalent to those a Party would use to protect its own interests.

What does reasonable mean legally?

Just, rational, appropriate, ordinary, or usual in the circumstances. It may refer to reasonable care, cause, compensation, doubt (in a criminal trial), and a host of other actions or activities. “Reasonable” is also frequently used for tax purposes.

What does reasonably acceptable mean?

The contract’s requirement that the document be “reasonably acceptable” imposes on the owner the duty of making a good-faith judgment on a reasonable basis whether the document is acceptable. It does not give the owner an absolute and arbitrary right to reject such a document.