20:49
THATS SO FUNNY
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
Usage of trade
Read a random definition: hand note
A quick definition of Usage of trade:
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.
A more thorough explanation:
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.
- In the construction industry, it is common practice to use certain materials and methods for building foundations. This usage of trade would be expected to be followed in a contract for a construction project.
- In the fashion industry, it is common practice to use certain fabrics and designs for certain types of clothing. This usage of trade would be expected to be followed in a contract for a clothing manufacturing agreement.
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.