Term may refer to a specific set of time that something occurs or takes effect, a specified period of time that is established either by the law to exercise a right or by agreement to set the duration of a contract.
- Legislatures, presidents, and judges serve terms for a specific amount of time.
- A lease may have a term of one year. Thus, such a contract will be in force for one year.
Term can also be used to refer to a clause or provision in a contract or deal, a stipulation or condition agreed upon between parties to the contract.
For example:
- A contract may have a forum selection clause which states that any conflict resulting from the contract must be decided in a specific state.
- A lease may have a clause establishing that the tenant may not have any pets in the leased property. Such no-pets-clause would be one of the terms provided in the lease.
[Last updated in October of 2021 by the Wex Definitions Team]