Regarding extrinsic evidence, which statement accurately reflects the priority among the listed sources for interpreting a contract for the sale of goods under the UCC?

• A. Course of performance first, then course of dealing, then trade usage
• B. Trade usage first, then course of dealing, then course of performance
• C. Course of dealing first, then course of performance, then trade usage
• D. Trade usage first, then course of performance, then course of dealing

Answer: (A)

When interpreting a contract for the sale of goods under the UCC, extrinsic sources can help explain or supplement terms, and there is a natural priority among them. The most persuasive evidence is how the parties actually performed under the current contract (course of performance), because it shows the concrete actions and expectations they established in this deal. Next comes what happened in prior dealings between the same parties (course of dealing), which reflects established patterns and understandings from their relationship. Finally, the general practices in the trade (usage of trade) can illuminate meaning, but it’s the least directly tied to the specific contract. So the correct statement follows this order: course of performance first, then course of dealing, then trade usage.