Simple English definitions for legal terms
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Usage of trade: A way of doing things that is commonly followed in a certain industry or place. It helps people understand what is expected in a business deal and how certain terms should be interpreted. For example, if everyone in a certain trade always uses a certain word to mean a specific thing, that word will have that meaning in contracts and agreements related to that trade.
Usage of trade is a term used in contracts to help interpret the meaning of certain terms. According to the Uniform Commercial Code, a usage of trade is a common practice or method of dealing that is regularly observed in a particular place, vocation, or trade. This regularity creates an expectation that the practice will be followed in a transaction.
These examples illustrate how a usage of trade can be used to interpret the meaning of certain terms in a contract. By understanding the common practices and methods of dealing in a particular industry, parties can ensure that their contract reflects these expectations and avoids any misunderstandings or disputes.