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Your order's been dispatched.

Is this contraction (not to indicate plural, but as a contraction of "order has") correct? Or would it be better to just simply write:

Your order has been dispatched.

I've looked through quite a few examples, but couldn't quite decide so thought I'd ask the community.

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Yes, it's correct. Written English tends to be more formal, though, and I would tend to write has been, but say it's. (It's not possessive, though. It's just a contraction for has, as it's is for it is.)

The New York Times is a well respected newspaper, which is fairly conservative in their English. Plus, it's written, which is more formal than spoken. However, in looking through some of their articles, I found:

  • What if It's All Been a Big Fat Lie? - New York Times
  • So Long, It's Been Good to Know You - NYTimes.com
  • It's been a year since Citi Bike started in New York City... NYTimes.com

But even there, it tends to appear in blogs, in quoting someone, or in well known phrases (it's been good to know you.)

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  • I think 'it has been' tends to be an established exception to your general rule, especially where, as in your examples, 'it' has no antecedent, either real or clearly implied.
    – Merk
    Commented Jul 2, 2014 at 1:20

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