Law School Case Briefs
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BLOOR v. FALSTAFF BREWING CORP.
United States Court of Appeals, Second Circuit (1979) | 601 F.2d 609
TL;DR: A brewery bought another's brands, promising "best efforts" to promote sales which generated royalties for the seller. When the buyer prioritized its own profits over sales volume, causing a sales collapse, the court found it breached the best efforts clause.
Legal Significance: This case defines the scope of a "best efforts" clause, establishing that it requires more than mere good faith. A party cannot prioritize its own profits to the detriment of its contractual partner's interests without showing that alternative efforts would be financially ruinous.