course of dealing

course of dealing. An established pattern of conduct between parties in a series of transactions (e.g., multiple sales of goods over a period of years). • If a dispute arises, the parties’ course of dealing can be used as evidence of how they intended to carry out the transaction. Cf. COURSE OF PERFORMANCE ; trade usage under USAGE. [Cases: Contracts 170. C.J.S. Contracts § 340.]

“A course of dealing is distinguishable from a course of performance. As defined by the [UCC], ‘course of dealing’ relates to conduct under other transactions which occurred with regularity prior to the formation of the present contract, while ‘course of performance’ relates to the conduct of the parties under the contract in question subsequent to its formation. However, in meaning the two expressions are essentially equivalent.” Ronald A. Anderson, Uniform Commercial Code § 1-205:86 (1997).


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