Journal Name: Lloyd's Maritime and Commercial Law Quarterly

Abstract:

Trade practices that are certain, notorious and reasonable will bind a contracting party who is ignorant of the practice. This article analyses these three criteria and reconciles them with contract doctrine. It argues that each of the criteria serves an important function in balancing the interests of contracting parties, and achieving an objectively fair outcome. The article critiques in particular the recognition of a trade practice in a banking case, Tidal Energy v Bank of Scotland, and argues that it failed to promote the consumer protection function of the criteria as evidenced by previous cases.