Commercially Reasonable Efforts Clauses

Summary

This practice note identifies the purpose and main principles of contractual obligations subject to "commercially reasonable efforts". Commercially reasonable efforts imposes a standard which is less onerous than the leave-no-stone-unturned standard of "best efforts" and allows the party undertaking the effort in question to cease its effort when the economics of doing so, from its own perspective, cease to make sense. This practice note also establishes the standard for the interpretation of such clauses and sets out the difference between commercially reasonable efforts and best efforts clauses.