Will use commercially reasonable efforts?

Last Update: May 30, 2022

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Asked by: Mr. Rudy Turner
Score: 4.5/5 (24 votes)

“Commercially reasonable efforts” is at a level below “best efforts” and is generally interpreted as requiring the party to exert substantial effort without requiring that the party take any action that would be commercially unreasonable under the circumstances.

Is commercially reasonable efforts better than reasonable efforts?

Reasonable efforts: still weaker standard, not requiring any action beyond what is typical under the circumstances. Commercially reasonable efforts: not requiring a party to take any action that would be commercially detrimental, including the expenditure of material unanticipated amounts or management time.

What does commercially reasonable manner mean?

Commercially Reasonable Manner or “Commercially Reasonable” means, with respect to a given goal or requirement, the manner, efforts and resources a reasonable person in the position of the promisor would use, in the exercise of its reasonable business discretion and industry practice, so as to achieve that goal or ...

What are commercially reasonable terms?

Commercially reasonable terms means both financial and commercial terms that are consistent with concepts of good faith and fair dealing and are no less favorable to ComEd than those contained in this Agreement, if any, or to the extent no such terms exist under this Agreement, reasonably consistent with the principles ...

What are best reasonable efforts?

“Reasonable best efforts” is a level down from the top end of the scale and is generally perceived as requiring substantial efforts be exerted in the process, but that a party would not ultimately be required to take any actions that would be commercially unreason- able under the circumstances.

Reasonable Efforts

25 related questions found

Will it make best efforts?

If a party promises “best efforts”, everything that can be done should be done, but not to the point of that party bankrupting itself. ... By contrast, "reasonable efforts" implies that what can be done should be done, in the context and purpose of the contract, but without requiring a party to leave "no stone unturned".

What does reasonable mean legally?

Just, rational, appropriate, ordinary, or usual in the circumstances. It may refer to reasonable care, cause, compensation, doubt (in a criminal trial), and a host of other actions or activities. ... “Reasonable” is also frequently used for tax purposes.

What is a commercially reasonable sale?

A sale is commercially reasonable if it is a “disposition in any recognizable market,” is “otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition,” or is approved in a judicial proceeding, by a bona fide creditor's committee, by a ...

What is the reasonableness rule?

The reasonableness standard is a test that asks whether the decisions made were legitimate and designed to remedy a certain issue under the circumstances at the time. Courts using this standard look at both the ultimate decision, and the process by which a party went about making that decision.

What is commercially reasonable discretion?

Reasonable Discretion means commercially reasonable judgment exercised in good faith. ... The burden of establishing lack of good faith or reasonableness shall be on Borrowers.

What is a reasonable manner?

adj. 1 showing reason or sound judgment. 2 having the ability to reason. 3 having modest or moderate expectations; not making unfair demands.

What is commercially reasonable effort?

One decision interpreted “commercially reasonable efforts” as requiring at the very least some conscious exertion to accomplish the agreed goal, but something less than a degree of efforts that jeopardizes a party's business interests.

What is a commercial manner?

adj. 1 of, connected with, or engaged in commerce; mercantile.

What does reasonable efforts mean in a contract?

The Core Definition of Reasonable Efforts is: “means, with respect to give an obligation, the efforts that a reasonable person in [the promisor's] position would use to comply with that obligation as promptly as possible.”

What does best efforts mean in legal terms?

“Best efforts” means taking, in good faith, all reasonable steps to achieve the objective, carrying the process to its logical conclusion and leaving no stone unturned. 3. “Best efforts” includes doing everything known to be usual, necessary and proper for ensuring the success of the endeavour. 4.

What does best efforts mean in law?

In such cases, the parties (or any parties involved in the deal) usually agree to apply all efforts to fulfil the corresponding obligations, or to assist with the occurrence of certain events. This intention of the parties is often expressed as "best efforts".

How do you calculate reasonableness?

Subtract the smaller number from the larger one to check for reasonableness. In this example, you would subtract 600 from 651 to get 51. The numbers are reasonably close, so you can probably accept that 651 is the correct answer.

Is reasonableness a validation check?

Validation is a quality check to ensure that data is complete, reasonable, formatted correctly, and within the ranges expected. An important validation tool is the reasonableness check. ... The data is not reasonable because it doesn't match what we expect from a last name field.

What is a reasonableness check?

reasonableness check: A test to determine whether a value conforms to specified criteria. Note: A reasonableness check can be used to eliminate questionable data points from subsequent processing. Synonym wild-point detection.

What is Article 9 of the Uniform Commercial Code?

Article 9 of the Uniform Commercial Code, which governs (i) the grant of a security interest in personal property to secure payment or performance of an obligation—a “true security interest”—and (ii) the sale of receivables, incorporates the primary property law principle of nemo dat quod non habet—one cannot transfer ...

What types of contracts fall under Article 2 of UCC?

Article 2 of the UCC governs the sale of goods, which is defined by §2-105 and includes things that are moveable, but not money or securities. It does not include land or houses. Contracts between merchants are also governed by article 2 of the UCC.

What is an Article 9 foreclosure?

UCC 9-610(a) provides that “[a]fter default, a secured party may sell, lease, license or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.”[2] Article 9 thus offers broad flexibility to the secured lender in the sale of its ...

What is a reasonable step?

Reasonable Steps means steps that are, in the circumstances, reasonably able to be taken to ensure that dealings in and advice about a product are in accordance with its target market determination.

What is an example of reasonable person standard?

The “reasonable person” is not an actual person. ... For example, if a trespasser breaks into a dark retail store and injures himself because he can't see where he's going, the business owner can argue that he did not owe him a duty of care and that it is also reasonable for the lights to be off when the store is closed.

What are the characteristics of a reasonable man?

This is the basis of the reasonable personal standard. Characteristics of a reasonable person standard include: A person must exercise the standard of care that would be expected of an ordinary, reasonable and prudent person in the same circumstances to avoid liability; It is an objective standard.