Best Efforts

Definition

A legal term that obligates the parties to make their best attempts to accomplish an objective outlined in a contract.

Example

“The buyer will use its best efforts to obtain financing for the acquisition of the company.”

See Also

Bad faith .

Tips

Using best efforts is important in many M&A contracts because an offer may be contingent on the buyer taking a specific action. Without best efforts, the buyer could walk away from a deal by simply doing nothing.