The phrase signifies an obligation to act diligently and take all reasonable steps to achieve a specific objective. It requires more than simply acting in good faith. A party bound by this obligation must pursue all plausible methods for fulfillment, within their control, even if those methods are inconvenient or costly. Consider a scenario where a company agrees to secure regulatory approval for a product using this standard. They are not merely expected to submit an application; they must actively address queries from the regulatory body, potentially conduct additional studies, and explore all available avenues to gain approval.
The significance of this term lies in its ability to bridge the gap between absolute guarantees and mere intentions in contractual agreements. It provides a measurable benchmark against which a party’s actions can be evaluated, offering a degree of certainty that would otherwise be absent. Historically, the inclusion of this standard has served to foster trust and facilitate collaborative ventures, particularly in situations characterized by inherent uncertainty or where outcomes are dependent on factors outside a party’s complete control. Its presence encourages proactive behavior and promotes a more equitable distribution of risk.
