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An occasion is anything exceptional that either occurs infrequently or is noteworthy when it does. We may not always have supper together as a family, but we do occasionally get down. But when Great Aunt Mabel comes to visit, we make a big family supper out of it.
An occasion may also refer to a specific moment or cause, or it may be an event unto itself. To celebrate your high school graduation, I’m gifting you your grandmother’s ring. Since her passing, I haven’t had a chance to look at it. Because it’s expensive, wear it only for exceptional events.