Course of dealing CASES

In English law, a course of dealing refers to consistent prior conduct between contracting parties that establishes an implied understanding or expectation about contractual terms in future transactions.

Definition and Principles

A course of dealing arises when parties have engaged in a series of previous transactions on similar terms. Consistent and regular past behaviour can imply terms into subsequent contracts, even if not explicitly stated.

Requirements for Establishing

• Consistency: Previous transactions must be sufficiently uniform to create a clear expectation.
• Regularity: Transactions must occur frequently enough to establish a recognisable pattern.
• Mutuality: Both parties must reasonably understand and expect the implied terms.

Practical Applications

Commonly invoked to incorporate terms such as standard conditions, exclusion clauses, or payment terms into contracts based on previous dealings.

Importance

Understanding course of dealing ensures contractual clarity and predictability, enabling businesses to rely confidently on established commercial practices.