term

A term is a specific set of time that something occurs or takes effect. A term may also be a specified period of time that is established either by the law to exercise a right, or through an 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.

A 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. A no-pets-clause would be one of the terms provided in the lease.

[Last reviewed in January of 2025 by the Wex Definitions Team ]

Wex

• COMMERCE
• PROPERTY
• landlord & tenant
• contracts
• wex definitions