3VB’s Finance Column: Emma Hughes writes on contractual determinations and commercial reasonableness

Financial instruments frequently give one party (more often than not the lender) the right to make a ‘decision’ or to ‘determine’ a matter that will impact on the other (i.e. the borrower).

Often that discretion or right to determine a point will be qualified to require the lender to act in a ‘commercially reasonable’ manner or to come to a ‘commercially reasonable’ outcome.

In this article, Emma Hughes considers what standard of behaviour this phrase applies to a lender’s obligations. Read the article here.

This article was first published by Practical Law in May 2024.