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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]