§ 24-3-5 [Usage and Custom in Contract Construction]

When two people sign a contract, they sometimes use words or phrases that have a specific meaning in their industry or community. A judge or jury is allowed to hear evidence about what those words or phrases commonly mean in that world, even if the contract does not spell it out.

For example, if two farmers sign a contract using a term that has a well-known meaning in farming, a witness can explain what that term typically means. This helps the court understand what both parties likely meant when they agreed to the contract terms.

This rule also allows courts to consider common practices that people in a certain trade or business usually follow. Even if those practices are not written into the contract, a court can take them into account when deciding what the contract means or what duties each side has.