Untitled research work

Abstract This commentary focuses on Article 5.1.5 of the UNIDROIT Principles of International Commercial Contracts (PICC) concerning the determination of the kind of duty involved. Art 5.1.5 provides criteria for determining the nature of contractual obligations. The question of whether an obligation involves a duty to achieve a specific result or a duty of best efforts is a result of the interpretation of the contract. Thus, Art 5.1.5 supplements the rules on contractual interpretation in Chapter 4 of the PICC. In determining the extent to which a party's obligation involves a duty of best efforts in the performance of an activity or a duty to achieve a specific result, regard shall be had to the way in which the obligation is expressed in the contract; the contractual price and other terms of the contract; the degree of risk normally involved in achieving the expected result; and the ability of the other party to influence the performance of the obligation.