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]