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ARTICLE · 29 MAY 2013

Difference Between Due Diligence And Reasonable Endeavours To Complete

Charles Russell Speechlys LLP
Charles Russell Speechlys LLP
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Charles Russell Speechlys LLP

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This decision shows that there is a difference between an obligation to carry out works diligently and an obligation to use all reasonable endeavours to ensure that works are completed.

United KingdomCorporate/Commercial Law

Morris Homes (West Midlands) Limited v Keay & Another [2013] EWHC 932 (TCC)

This decision shows that there is a difference between an obligation to carry out works diligently and an obligation to use all reasonable endeavours to ensure that works are completed.

This was a case where a landlord developer suspended work because the recession had made the project unviable. In the agreement for lease with prospective tenants, there were separate obligations requiring the landlord:

  • to carry out the works diligently in a good and workmanlike manner with good quality materials and
  • to use all reasonable endeavours to ensure that the works were completed as soon as reasonably practicable (unless prevented or delayed by any circumstances not within the reasonable control of the landlord).

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