Legal Definitions - course of business

Course of Business refers to the typical, routine activities and transactions that a company or individual regularly undertakes as part of its ongoing operations. It encompasses the usual practices, procedures, and dealings that are considered normal and expected for that particular type of trade or profession. This term is often used interchangeably with ordinary course of business or regular course of business.

Here are some examples to illustrate this concept:

• Example 1: Retail Sales

  A local bakery sells a dozen croissants to a customer. This transaction is considered to be in the course of business for the bakery.

  Explanation: Selling baked goods is the primary, everyday function of a bakery. This transaction is a fundamental part of its regular operations and how it generates revenue, making it a clear example of an activity within its normal course of business.

• Example 2: Manufacturing Operations

  An automobile manufacturer routinely purchases steel and rubber from its established suppliers, or pays its assembly line workers their bi-weekly wages.

  Explanation: For an automobile manufacturer, acquiring raw materials like steel and rubber, and compensating its employees, are essential, recurring tasks necessary to produce vehicles. These are standard operational activities, making them part of the factory's course of business.

• Example 3: Professional Services

  An architectural firm designs a new building for a client and subsequently sends an invoice for its professional services.

  Explanation: Providing architectural design services and billing clients for that work are the core functions of an architectural firm. These actions represent the firm's regular way of generating revenue and fulfilling its purpose, thus falling squarely within its course of business.