Ordinary course of business

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The ordinary course of business is a standard used to indicate within a specified period, a business:

  • Has been conducted consistently within the scope of past commercial customs and practices.
  • Has not incurred any liabilities outside the day-to-day operations.
  • Has engaged in activities considered normal for that specific business.
  • Has adhered to the industry practices.

This term is commonly used in merger and acquisitions contracts. It may include only one or a combination of the above elements or any other that may refer to the scope of what is considered customary for that business.

[Last updated in July of 2021 by the Wex Definitions Team]