Legal Definitions - regular course of business

The term regular course of business refers to the ordinary, customary, and routine activities that a company or individual typically performs as part of its normal operations. These are the usual transactions, decisions, and processes that align with the established purpose and day-to-day functioning of the entity. Actions falling within the regular course of business are generally expected, predictable, and do not represent an unusual deviation from standard practice.

Here are some examples to illustrate this concept:

• Imagine a local bakery that bakes and sells fresh bread, pastries, and cakes every day. When the bakery sells a dozen croissants to a customer, this transaction is considered part of its regular course of business. It is the primary and expected activity of a bakery, occurring routinely and consistently to generate revenue.

• Consider a software development company whose main activity is creating custom applications for clients. When this company pays its monthly salaries to its software engineers, this is an action taken in the regular course of business. Paying employees is a standard, recurring operational expense essential for the company to function and deliver its services, making it a routine part of its operations.

• Think about a commercial airline. When the airline purchases jet fuel from a supplier to power its flights, this procurement is an activity within its regular course of business. Acquiring fuel is a fundamental and continuous requirement for an airline to operate its core service of transporting passengers and cargo, making it a predictable and necessary part of its daily operations.