The real estate sector frequently includes in various agreements
obligations to use "reasonable endeavours" or "best
endeavours" and like to argue over what each phrase really
means.
So when you have entered into an agreement to use your
"best endeavours" to do something, can you be
expected to act against your own commercial interests in fulfilling
this obligation? The Court of Appeal recently decided that an
airport's obligation to use its "best endeavours" to
promote an airline's services meant that it had to keep the
airport open outside its usual hours even though it would be
operating at a loss. This was clearly against the
airport's commercial interests.
The case involved a 15 year agreement made between Jet2 and
Blackpool Airport. As part of the agreement the airport
agreed to use its "best endeavours" to promote the
airline's low-cost services from the airport. The
contract made no reference to operating hours and for four years
there were no issues
