A recent High Court decision has considered the meaning of
"reasonable endeavours" in the context of an obligation
to complete construction works. The financial impact to the
developer / contractor of its obligation to complete was held by
the court to be irrelevant in considering whether "reasonable
endeavours" had been exercised. The contractor's ability
to fund the works was to be presumed. This ruling gives pause for
thought as to the extent to which an obligation to use
"reasonable endeavours", usually considered to be the
weakest of endeavours clauses, requires a party to sacrifice its
own commercial interests.
The relevant facts
Telford Homes (Creekside) Ltd ("Telford") was the
developer of a mixed-used development known as "Creekside
Village West" in Greenwich. Telford agreed to provide a
long lease of the commercial parts of the development to Ampurius
Nu Homes Holdings Ltd ("Ampurius"). Telford and Ampurius
entered into an Agreement for Lease on 7
