Also known as: general customs
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An established practice that prevails throughout a country and serves as a source of law.
A widespread community or industry practice that a reasonable actor is charged with knowing when assessing whether conduct creates an unreasonable risk likely to affect the conduct of others.
An established practice that prevails throughout a country and serves as a source of law.
Select any source to read its text and confirm it supports the definition.
A widespread community or industry practice that a reasonable actor is charged with knowing when assessing whether conduct creates an unreasonable risk likely to affect the conduct of others.
Select any source to read its text and confirm it supports the definition.
Each sense below has its own examples, sources, and questions.
Taylor books the Caldwell music hall and gardens for a series of performances. The parties' agreement incorporates the longstanding practice that accidental fire destroying the venue before the first performance rescinds the contract without liability. When fire damages the hall, the court applies that practice to determine whether the agreement remains enforceable.
Sun executives plan a large-scale stock purchase to reach a 33 percent holding in a target company. They know that no fixed definition of tender offer exists and that the term has historically been understood through prevailing market practices. The court evaluates whether the transaction fits within that understanding when deciding whether pre-filing requirements apply.
No. Specific negotiation history and express language take precedence over general customs when determining the meaning of a contractual term. Customs supply background context but yield to clearer manifestations of party intent.
Supporting sources
MetroBuild leaves an open stairwell unguarded on an upper floor during construction for Harbor LLC. Local contractors routinely install temporary guardrails around such openings, and city safety codes address the hazard. A subcontractor employee falls through the opening. The court treats MetroBuild as charged with knowledge of the prevailing installation practice when measuring whether its site supervisor recognized an unreasonable risk.
An actor must know general customs in so far as they are likely to affect the conduct of others. This knowledge is imputed when determining whether the actor should have recognized that conduct involved an unreasonable risk of harm.
Supporting sources
A general custom prevails throughout a country or industry and informs the baseline knowledge imputed to a reasonable person. A local custom is confined to a defined area and may supply additional context but does not replace the broader standard.
Supporting sources
No. The law charges a reasonable actor with knowledge of general customs that shape how others behave, even if the actor subjectively lacks that knowledge. This imputation prevents defendants from narrowing the standard of care to their own limited awareness.
Supporting sources
…the plaintiffs were not ready or willing to take the Hall and Gardens; fourth, exoneration before breach; and fifth, that by a general custom (part of the agreement) if the Gardens and Music Hall were destroyed or so far damaged by accidental fire as to prevent the entertainments being given between the making of the agreement…