Practice Quiz

Paralegal Exam Prep

Category - Contracts

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A usage of trade is:
  1. Any practice of dealing that is used so regularly in a region or industry as to justify an expectation that it will be followed in the contract at issue.
  2. Normal business conduct between parties to a business transaction.
  3. A formula, device, pattern, or compilation of information that is used in business but is not known to the public.
  4. Contract terms that are always used in any type of contract within a particular industry.
  5. Contract terms that are always used in any type of contract within a particular region of the country.
Explanation
Answer: A. A usage of trade is any practice of dealing that is used so regularly in a region or industry as to justify an expectation that it will be followed in the contract at issue. In interpreting the terms of a contract, the court will examine the express terms of the contract. It will also consider usage of trade if facts prove the existence of the usage of trade.
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