Own Commercial Advantage Paramount in Contract Rules Court

Posted: 15th July 2011

Many contracts require one or both parties to use ‘all reasonable endeavours’ to fulfil the contract. When low-cost airline Jet2 and the operators of Blackpool Airport (BAL) made a contract with one another, it required both to ‘use their best endeavours to promote Jet2.com’s low-cost services…and required BAL to use ‘reasonable endeavours’ to provide a cost base that will facilitate Jet2.com’s loc cost pricing’.

The two companies began a dispute when BAL wished to change the hours during which Jet2 flights would operate. The argument turned on the meaning of the expressions ‘best endeavours’ and ‘all reasonable endeavours’.
The court considered that in each case the meaning had to be construed form the context of the agreement. However, the expression ‘all reasonable endeavours’ could not mean the requirement to sacrifice one’s own commercial advantage.