A marketing and business development consultant entered into an agreement with a company and receives a monthly consideration, which at some point ceased to be paid. The company contended that the consultant did not achieve the required results and therefore it terminated the agreement due to breach and was not required to provide prior notice despite the language of the agreement that stipulated so.
The Court held that the agreement between the parties should be classified as an endeavors obligation rather than a result obligation – an endeavors obligation is an obligation to take all appropriate measures to achieve the goal without committing to actually achieve it, unlike a results obligations aimed at actually achieving a particular result. Therefore, even if the company was not satisfied with the service received, the consultant was not in breach of contract and the company was not entitled to terminate the agreement without prior notice.