Under the second of two contracts with Citrus Orchard for deliveries of fruit, Distribution Center refuses to pay for fruit that arrives damaged. Citrus responds that the buyer did not waive payment for damaged goods in the parties' first contract. Citrus is arguing that the court should take into account
A)course of dealing.
B)course of performance.
C)usage of trade.
D)none of the choices.

Question

Quizplus · Accepted Answer

Course of dealing refers to the previous conduct between parties in their transactions, which can help interpret their current agreement. Since Citrus Orchard is referring to the terms and practices established in the first contract to argue about the obligations in the second contract, they are invoking the concept of course of dealing to suggest that the absence of a waiver in the first contract should influence the interpretation of the second contract's terms.

Under the Second of Two Contracts with Citrus Orchard for Deliveries