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Microlesson · 5-min read

External Aid: Usage of Trade / Practice

## Usage as an External Aid

Usage of trade or practice is sometimes used to construe an Act.

### Underlying Idea

  • The acts done under a statute often provide a key to the statute itself.
  • Where the language is doubtful, the way it has been interpreted and acted upon over a long period may determine its true meaning.
  • This is sometimes called contemporanea expositio — the contemporary or long-standing exposition of a statute by those who applied it.

### Practical Use

When a term in a statute is not specifically defined, customary trade usage or day-to-day administrative practice can fix its meaning.

Worked example

### Example 1

'Reasonable time': Where 'reasonable time' is not specifically defined in an Act, courts interpret it according to day-to-day usage and the customs of the relevant trade or transaction — what is 'reasonable' for shipping goods will differ from what is 'reasonable' for filing a return.

⚠️ Common exam mistakes

  • Using usage to override an unambiguous statutory definition.
  • Treating short-term or recent practice as binding usage — the rule applies most strongly to long-standing usage.
Reference:
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