Effective: June 29, 2011
Latest Legislation: House Bill 9 - 129th General Assembly
Course of performance, course of dealing, and usage of trade [UCC 1-303]
(A) A "course of performance" is a sequence of conduct between the parties to a particular transaction that exists if:
(1) The agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and
(2) The other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection.
(B) 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.
(C) A "usage of trade" is any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question. The existence and scope of such a usage must be proved as facts. If it is established that such a usage is embodied in a trade code or similar record, the interpretation of the record is a question of law.
(D) A course of performance or course of dealing between the parties or usage of trade in the vocation or trade in which they are engaged or of which they are or should be aware is relevant in ascertaining the meaning of the parties' agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement. A usage of trade applicable in the place in which part of the performance under the agreement is to occur may be so utilized as to that part of the performance.
(E) Except as otherwise provided in division (F) of this section, the express terms of an agreement and any applicable course of performance, course of dealing, or usage of trade must be construed whenever reasonable as consistent with each other. If such a construction is unreasonable:
(1) Express terms prevail over course of performance, course of dealing, and usage of trade;
(2) Course of performance prevails over course of dealing and usage of trade; and
(3) Course of dealing prevails over usage of trade.
(F) Subject to section 1302.12 of the Revised Code, a course of performance is relevant to show a waiver or modification of any term inconsistent with the course of performance.
(G) Evidence of a relevant usage of trade offered by one party is not admissible unless that party has given the other party notice that the court finds sufficient to prevent unfair surprise to the other party.
Structure Ohio Revised Code
Title 13 | Commercial Transactions
Chapter 1301 | General Provisions
Section 1301.101 | Short Titles - Ucc 1-101.
Section 1301.102 | Scope of Chapter 1301 - Ucc 1-102.
Section 1301.104 | Construction Against Implied Repeal - Ucc 1-104.
Section 1301.105 | Severability - Ucc 1-105.
Section 1301.106 | Use of Singular and Plural; Gender - Ucc 1-106.
Section 1301.107 | Section Captions - Ucc 1-107.
Section 1301.201 | General Definitions - Ucc 1-201.
Section 1301.202 | Notice; Knowledge - Ucc 1-202.
Section 1301.203 | Lease Distinguished From Security Interest - Ucc 1-203.
Section 1301.204 | Value - Ucc 1-204.
Section 1301.205 | Reasonable Time; Seasonableness [Ucc 1-205].
Section 1301.206 | Presumptions - Ucc 1-206.
Section 1301.301 | Territorial Applicability; Parties' Power to Choose Applicable Law - Ucc 1-301.
Section 1301.302 | Variation by Agreement - Ucc 1-302.
Section 1301.303 | Course of Performance, Course of Dealing, and Usage of Trade - Ucc 1-303.
Section 1301.304 | Obligation of Good Faith - Ucc 1-304.
Section 1301.305 | Remedies to Be Liberally Administered - Ucc 1-305.
Section 1301.306 | Waiver or Renunciation of Claim or Right After Breach - Ucc 1-306.
Section 1301.307 | Prima Facie Evidence by Third-Party Documents - Ucc 1-307.
Section 1301.308 | Performance or Acceptance Under Reservation of Rights - Ucc 1-308.
Section 1301.309 | Option to Accelerate at Will - Ucc 1-309.
Section 1301.310 | Subordinated Obligations - Ucc 1-310.
Section 1301.311 | Transactions Entered Into Before 7-1-62 - Ucc 10-102(2).