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Simple English definitions for legal terms
course of dealing
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A quick definition of course of dealing:
Course of dealing refers to the way people have acted in the past when they made deals with each other. For example, if a store always gives a 30-day warranty with their TVs, that's part of their course of dealing. This is important because it helps people understand what they can expect when they make a deal. If there's a disagreement about what a contract means, a court might look at the course of dealing to figure out what the people meant. But the course of dealing can't change what's written in the contract. Course of dealing is different from course of performance, which is about what people do after they've made a deal.
A more thorough explanation:
Definition: Course of dealing refers to a pattern of behavior in previous transactions that can be seen as evidence of a mutual understanding between the parties. It is relevant in contract law because it helps with the interpretation of contract terms.
For example, if a car dealer always includes a warranty with their sales, this warranty may be part of the course of dealing. If a customer buys a car from the dealer and expects a warranty, the dealer cannot later claim that there was no warranty.
However, a course of dealing cannot contradict explicit contract terms. For instance, if a contract explicitly states that there is no warranty, the course of dealing cannot be used to argue otherwise.
Course of dealing is different from course of performance, which refers to behavior after a contract has been formed. Course of dealing is concerned with behavior that occurred before the contract was formed.