Legal Definitions - conventional custom

A conventional custom refers to a long-standing, widely recognized, and consistently followed practice within a particular trade, industry, or community. When parties enter into an agreement within that specific context, this custom is often presumed to be an unwritten term of their contract. It influences how their obligations are understood and enforced, even if they didn't explicitly mention it in their formal agreement. Essentially, it becomes legally binding due to its widespread acceptance and the reasonable expectation that participants in that field adhere to it.

• Example 1: The Shipping Industry

  In the global maritime shipping industry, it is a conventional custom that if a vessel encounters unexpected severe weather conditions, the captain has the authority to reroute the ship or delay its arrival to ensure the safety of the crew and cargo. This practice is rarely written into every individual shipping contract but is universally understood and accepted by all parties involved in international shipping.

  How it illustrates the term: If a shipment is delayed due to such a reroute, the cargo owner generally cannot claim a breach of contract for the delay. The conventional custom dictates the captain's discretion in these circumstances, effectively becoming an implied term of the shipping agreement that both parties are expected to respect.

• Example 2: Commercial Real Estate Leasing

  In many commercial real estate markets, it is a conventional custom that the tenant is responsible for minor, non-structural repairs and maintenance within their leased premises, such as changing light bulbs or fixing a leaky faucet, even if the lease agreement doesn't explicitly detail every single repair responsibility. Major structural repairs or system overhauls, however, typically remain the landlord's duty.

  How it illustrates the term: If a dispute arises over who should fix a minor issue not explicitly covered in the lease, a court might refer to this conventional custom to determine the parties' implied obligations. Both the landlord and tenant, operating within that market, are presumed to be aware of and abide by this established practice.

• Example 3: Agricultural Commodity Trading

  In a specific regional market for agricultural commodities, such as grain, it might be a conventional custom that the buyer is responsible for arranging and paying for the transportation of the purchased goods from the seller's farm or storage facility, unless otherwise specified. The seller's responsibility ends once the goods are loaded onto the buyer's designated transport.

  How it illustrates the term: This unwritten rule, developed over many years of local trade, dictates the division of labor and cost for delivery. If a contract for grain sale is silent on transportation, this conventional custom would likely be applied to interpret the parties' unstated obligations, assuming both the farmer and the buyer operate within that particular market and are familiar with its practices.