Which of the following is the correct order of prioritizing the external sources used to interpret the terms of a written contract?
A) course of dealing, usage of trade, and course of performance
B) usage of trade, course of performance, and course of dealing
C) course of performance, course of dealing, and usage of trade
D) course of dealing, course of performance, and usage of trade

Question

Quizplus · Accepted Answer

The correct order for interpreting the terms of a written contract using external sources is: course of performance (how the parties to the contract have actually performed under the contract), course of dealing (the history of past transactions between the parties), and usage of trade (practices and methods of dealing regularly observed in a particular industry). This order reflects the principle of giving priority to the parties' own actions and agreements over more general industry practices.

Which of the Following Is the Correct Order of Prioritizing