U.S. Bank enters into a new contract with Risk Management Services, Inc. (RMS), to conduct UCC searches. They have never employe

Question

2 years ago

6

U.S. Bank enters into a new contract with Risk Management Services, Inc. (RMS), to conduct UCC searches. They have never employe

d an outside vendor to conduct these types of searches, though other banks frequently do. RMS adds a provision to the contract that states: "RMS’s liability is limited to the amount of fee paid for each service provided under this contract." RMS generally charges $25 per UCC search conducted. The first search conducted by RMS for U.S. Bank does not find a UCC lien, but causes U.S. Bank a $1,000,000 loss. U.S. Bank claims that the provision added by RMS is ambiguous. In this scenario, a court would look at which of the following to interpret the terms of the contract?

Business

1 answer:

nikitadnepr [17] · Answer 1 · 2023-03-29T07:00:06+03:00

nikitadnepr [17]2 years ago

3 0

Answer:

The court will probably look at the custom usage of trades on similar contracts and provisions.

Explanation:

Usage of trade refers to business practices that are so commonly accepted and carried out that anyone can expect that they are included in the transactions.