When it comes to businesses and legal dealings, there are various types of contracts that both parties need to agree on. One type of contract that is commonly used is a course of dealing contract.
A course of dealing contract is an agreement between two parties that have had previous business dealings. This type of contract is established over time, as the parties have a history of working together and have developed an understanding of each other`s responsibilities and expectations.
The course of dealing contract is often used in situations where the parties have had a long-term business relationship, and the terms of the agreement have been established and repeated over a long period. For example, a supplier and a retailer may have a course of dealing contract where the supplier provides goods to the retailer on a regular basis, and the retailer agrees to pay a specific price for those goods.
When drafting a course of dealing contract, the parties involved should consider a few key factors. First, they must ensure that the terms of the agreement are clear and easy to understand. This clarity is particularly important, as a course of dealing contract is typically verbal or informal in nature.
Second, the parties must ensure that the terms of the contract are reasonable and fair. They need to make sure that the terms will benefit both parties, and that neither party will be at a significant disadvantage.
Third, the parties must ensure that the course of dealing contract complies with all relevant laws and regulations. This can include ensuring that the contract is not discriminatory in nature and that it does not violate any antitrust laws.
Finally, it is important to note that a course of dealing contract is not a binding legal agreement. Instead, it is an informal agreement that is based on trust and good faith between the parties. However, if a dispute arises, a course of dealing contract can be used to help settle the issue.
In conclusion, a course of dealing contract is a type of agreement that is established over time between two parties that have a history of working together. It is an informal agreement based on trust and good faith, and must be fair and reasonable, comply with all relevant laws and regulations, and have clear and understandable terms.