Asked by Justice Kay-Lease on May 31, 2024
Verified
A court is most likely to infer that both parties to a sale or lease of goods intended for a well-recognized trade custom to apply to their contract
A) despite evidence to the contrary.
B) when both parties had knowledge of the custom.
C) in the absence of negligence on the part of the seller or lessor.
D) if no implied warranty arises from the parties' course of dealing.
Trade Custom
Established practices or patterns of behavior that are widely accepted and followed within a particular industry.
Implied Warranty
A legal assumption that a product will meet certain standards of quality and reliability without being explicitly stated.
Contract
A legally binding agreement between two or more parties that outlines obligations and rights.
- Recognize the significance of trade customs in the interpretation of sales or lease contracts.
Verified Answer
ZK
Zybrea KnightJun 06, 2024
Final Answer :
B
Explanation :
Trade customs are considered in contract interpretation when both parties are aware of such customs, as this awareness implies their intention to incorporate these customs into their agreement.
Learning Objectives
- Recognize the significance of trade customs in the interpretation of sales or lease contracts.