Glossary definition
Best Endeavours
A contractual obligation requiring a party to take all reasonable steps to achieve a specified outcome, even at significant cost or inconvenience to themselves. In English law, a best endeavours obligation is the most onerous standard, requiring the obligor to do everything a reasonable person in their position could do, short of actions that would result in their financial ruin.
Definition
A contractual obligation requiring a party to take all reasonable steps to achieve a specified outcome, even at significant cost or inconvenience to themselves. In English law, a best endeavours obligation is the most onerous standard, requiring the obligor to do everything a reasonable person in their position could do, short of actions that would result in their financial ruin. Development finance facility agreements often include best endeavours clauses relating to obtaining planning, achieving practical completion, or meeting pre-sale targets.
See also
Closely related terms.
Facility Agreement
The legal contract between a borrower and a lender that sets out all terms and conditions of the loan including the facility amount, interest rate, drawdown mechanics, repayment terms, covenants, and events of default.
Condition Precedent
A requirement that must be satisfied before a lender is obliged to make funds available under a facility agreement, often abbreviated to CP.
Sunset Clause
A contractual provision that sets a longstop date by which certain conditions must be fulfilled, failing which either party may terminate the agreement.
Further reading
Guides that touch this term.
Guide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
The Capital Stack in Property Development: How to Structure Your Funding
A comprehensive guide to understanding and structuring the capital stack in UK property development, from senior debt through mezzanine to equity contributions.
9 min read readRead
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