Resource companies court peril by ignoring reasonable endeavours clauses, which can have a major impact on their commercial interests in the event of legal disputes.

On 5 March 2014, the High Court of Australia (HCA) held that Woodside Energy and other gas suppliers (the Sellers) did not breach a contractual obligation to use reasonable endeavours to supply gas to Verve Energy (Verve). The Sellers were within their contractual rights to take into account commercial, economic…