Asked by Brian Doherty on May 25, 2024
Verified
Explain the term usage of trade.What happens if there is a conflict between the express terms of the contract and trade usage?
Usage of Trade
A set of practices or behaviors that are widely accepted and used by a particular industry or commercial sector.
Express Terms
Specific conditions and provisions explicitly stated in a contract or agreement.
Trade Usage
Established practices or patterns of behavior regularly observed and accepted in a particular industry or trade.
- Examine the role of performance history, prior dealings, and trade practices in contract interpretation.
Verified Answer
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nithish REDDYMay 29, 2024
Final Answer :
In many kinds of businesses,there are customs and practices of the trade that are known by people in the business and that are usually assumed by parties to a contract for goods of that type.Under the Code,the parties and courts may use these trade customs and practices-known as usage of trade-in interpreting a contract.If there is a conflict between the express terms of the contract and trade usage,the express terms prevail.
Learning Objectives
- Examine the role of performance history, prior dealings, and trade practices in contract interpretation.