What Does “Reasonable Efforts” Mean in a Contract?
A standard requiring a party to take sensible steps toward an objective, balanced against cost and practicality.
Detailed Explanation
"Reasonable efforts" is a lower standard than "best efforts." It requires pursuing an objective in a reasonable way, considering factors like cost, time, and business impact. You don't have to sacrifice everything to succeed.
What's "reasonable" depends on context, industry standards, and the specific circumstances. It's judged objectively - would a reasonable person in similar circumstances have done more?
Example in a Contract
“Vendor shall use reasonable efforts to resolve any reported defects within five (5) business days. Vendor's efforts shall be deemed reasonable if consistent with industry-standard support practices.”
Why It Matters
"Reasonable efforts" gives you more flexibility than "best efforts." You need to try genuinely, but you can balance the effort against practical considerations like cost and competing priorities.
Related Terms
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