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Ordinary Course of Business

Definition - What does Ordinary Course of Business mean?

Behaviors, practices and customs that commonly occur in a specific industry are referred to as happening within the ordinary course of business. When a party seeks to recover costs or damages from a transaction that was made impossible by a breach or tort, the courts use ordinary course of business calculations to ascertain how much the offended party may recover.

Justipedia explains Ordinary Course of Business

Transactions that are said to happen in the ordinary course of business are transactions considered customary and normal. In cases where one party’s financial power so clearly overmatches that of another party, courts may view transactions between the parties with heightened suspicion. When reviewing these transactions, the powerful party may defend itself if it proves that it charged a fee for something falling within the ordinary course of business.

When it comes to calculating damages, a plaintiff may recover for money that the plaintiff would have made in the ordinary course of business.

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