Commercially Reasonable Efforts

Commercially reasonable efforts is a contract standard that means a party must take reasonable, practical steps that a similarly situated business would take to achieve a specified objective—using diligent effort consistent with normal business practices, and generally without requiring extraordinary measures (like taking on unreasonable cost, risk, or harm to the business), unless the contract says otherwise.

Because it’s context-specific, the exact meaning often depends on the agreement’s language (e.g., any cost cap, deadlines, or “including/without limitation” examples).