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Usage of trade
Last updated: 06-Oct-2014

Per Willes J in Meyer v Dresser (1864) 16 C.B.(N.S.) 646 at p. 662:

I apprehend that a usage [of trade], to be available, must be some practice of merchants creating rights between the parties to a contract in respect of some matter which is not in terms provided for by the contract. It must be something more than a mere mode of carrying on business … It is not a usage governing all transactions in business generally; it is a usual form of agreement for the purpose of settling the claims which arise from time to time, and which must be settled somehow, and which the parties generally agree to settle in that way, because it is the most convenient way; they are not bound to agree to settle in that way unless they think proper to do so.


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