Legal Definitions - business record exception

The business record exception is a legal rule that allows certain records to be admitted as evidence in court, even if they would normally be considered hearsay. This exception is important in business litigation, as it allows parties to use records created by their own organization to prove their case.

To qualify for the business record exception, a record must meet several requirements:

• The information in the record must come from someone with first-hand knowledge of the event, action, opinion, or condition being admitted.
• The person making the record must have done so as part of their job, meaning it can only come from employees.
• The records must be made in the normal course of business.
• A person must be able to testify to the standards of record keeping for the organization.
• The records must not give rise to untrustworthiness.

For example, if a company is being sued for breach of contract, it may use its own records of the contract and its performance to prove that it fulfilled its obligations. These records would likely qualify for the business record exception, as they were created by employees with first-hand knowledge of the contract and were made in the normal course of business.

It's important to note that the business record exception only applies to records created by an organization. If a party wants to use records created by someone outside the organization, they may need to rely on a different exception to the hearsay rule.