M Civ JI 142.54 Custom and Usage of Trade / Business / Industry

The customs and usages of the [ trade / business / industry ] may be shown to establish a point on which the contract is ambiguous. To show the existence of a custom or usage of the [ trade / business / industry ], a party must prove that the custom was well established and was generally followed in the [ trade / business / industry ] at the time the contract was made. It must also be shown that [ name of party against whom it is being asserted ] knew of the usage and had reason to know that [ name of other party ] assented to the words of the contract in accordance with it, or that, if [ name of party against whom it is being asserted ] did not know of the usage, an ordinary person in that [ name of party against whom it is being asserted ]’s position would have known of it.

Note on Use

This instruction should be given only if the contract is ambiguous.

Comment

Schroeder v Terra Energy Ltd, 223 Mich App 176 (1997); Independence Twp v Reliance Bldg Co, 175 Mich App 48 (1989).

History

M Civ JI 142.54 was added March 2005. Amended January 2022.