A course of dealing refers to a pattern of behavior or conduct established through previous transactions between two parties. This pattern helps to create a shared understanding of how they interpret each other's actions and communications in future dealings. Essentially, it serves as a framework for understanding their agreements and interactions.
This term is commonly used in contract law and commercial transactions. It is particularly relevant in cases where the interpretation of a contract may depend on the history of dealings between the parties involved. Understanding a course of dealing can help clarify ambiguous terms and establish expectations in various legal contexts, including:
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Here are a couple of examples of abatement:
Example 1: Two businesses regularly engage in transactions where one party supplies goods and the other pays within thirty days. If the supplier later attempts to change the payment terms, the buyer may argue that the previous dealings establish a different expectation.
Example 2: A landlord and tenant have a history of informal agreements regarding property maintenance. If a dispute arises about maintenance responsibilities, the tenant may reference their course of dealing to support their claims. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Variation |
|---|---|
| California | Recognizes course of dealing in both contract and tort law. |
| New York | Emphasizes the importance of written agreements over course of dealing. |
| Texas | Allows for course of dealing to influence contract interpretations. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Course of Performance | Conduct regarding the performance of a specific contract. | Focuses on a single contract rather than multiple transactions. |
| Usage of Trade | Practices and norms established in a particular industry. | Broader context, often applicable to multiple parties in an industry. |
If you find yourself in a situation where a course of dealing may be relevant, consider the following steps:
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A course of dealing is a pattern of conduct established through previous transactions between parties that helps interpret future agreements.