Contracts/Course of dealing: Difference between revisions
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Revision as of 01:14, February 26, 2016
The term course of dealing is defined in the Uniform Commercial Code as follows:
A "course of dealing" is a sequence of conduct concerning previous transactions between the parties to a particular transaction that is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.
UCC § 1-303(b). "Course of dealing," as defined in subsection (b), is restricted, literally, to a sequence of conduct between the parties previous to the agreement. A sequence of conduct after or under the agreement, however, is a "course of performance."[1]
Although the term is usually used in US contract law, where the parties' course of dealing helps the court to understand the intention of the contracting parties, it is also used elsewhere in the law. In US patent law the term is used to help interpret the meaning of words used in patent claims by examining the prosecution history of a patent to determine what meaning the applicant and patent examiner understood claim words to have. It has been observed in the Federal Circuit:
The prosecution history often proves useful in determining a patent's scope, for it reveals the course of dealing with the Patent Office, which may show a particular meaning attached to the terms, or a position taken by the applicant to ensure that the patent would issue.[2]
