Law on best efforts provision remains ‘deeply unsettled’

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted April 4, 2024 11:26 AM

As examples of the inconsistent conclusions courts have reached on the “multitude of thorny issues” presented by contracts with “best efforts” provisions, the Texas Court of Appeals cited a 2006 New York case and a 1971 Illinois appellate opinion.The plaintiffs in the Texas case, Linda and Barry Spain, sold Houston Metro Electrical Corp. to Phoenix Electric Inc. At the time, according to the Spains, “HMEC was worth around $4-5 million.”As trustees of the trust that owned all of HMEC …

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