The Definition of "Usage of Trade" Includes

question 53

Multiple Choice

The definition of "usage of trade" includes:

• A) a sequence of previous conduct between the parties that may fairly be regarded as establishing a common basis of understanding for interpreting their expressions and agreement.
• B) a practice regularly observed and followed in a place, vocation, or trade.
• C) separation rules that apply to transactions between merchants.
• D) jargon or language that is particular to the trade of the parties to the contract.

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Definitions:

Potential Loss

A hypothetical amount of money that a business or individual could lose in the future due to risks.

Risk

The potential for losing something of value or for an undesirable outcome, often assessed in decisions involving finance, safety, and health.

Known Factors

Elements or conditions that are clearly understood or recognized in a given context or analysis.

Insurance Contract

A legal agreement between an insurance policyholder and the insurer, detailing the terms and conditions under which the insurer agrees to compensate the insured for specific losses or damages.