336.1-303 COURSE OF PERFORMANCE, COURSE OF DEALING, AND USAGE OF
(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 subsection (f), 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
, 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.
History: 2004 c 162 art 1 s 18