MEANING OF 'ALL REASONABLE ENDEAVOURS' AND 'BEST ENDEAVOURS'

In Jet2.com v Blackpool Airport Ltd [2011] EWHC 1529 (Comm), [2011] All ER (D) 06 (Jul) Judge Mackie affirmed that there is no difference between an obligation to use ‘all reasonable endeavours’ and one to use ‘best endeavours.’ The extent of the obligation imposed by these words does depend very much upon the facts of the individual case, although, as the present case demonstrates, a contracting party who takes a sudden, unilateral decision may face difficulty in proving that it has used ‘all reasonable’ or ‘best’ endeavours.

The facts

The claimant, a low cost airline company, operated an airline service out of an airport owned by the defendants. The issue between the parties related to the ability of the claimant to operate a service out of the ‘normal’ hours of the operation of the airport (which were between 07.00 and 21.00 in winter and 06.00 and 20.00 in summer). The agreement did not expressly impose an obligation on the defendants to operate the airport outside of normal hours, but nor did it contain a restriction on opening hours. However, it was known that low cost airlines were in the habit of operating flights outside of normal operating hours. Over the years, the practice had developed whereby the claimant’s flight schedules did operate outside of these normal hours and the defendants did not raise an objection to this practice. But the defendants began to experience greater financial difficulties and on 22 October 2010 they told the claimant that, with effect from midnight on 29 October, they would not accept departures or arrivals outside normal hours. It was held that this ‘sudden and unilateral’ decision on the parts of the defendants amounted to a serious breach of contract.