Legal Definitions - defined term

A defined term is a word or phrase that is given a very specific and often unique meaning *only for the purposes of the document in which it appears*. This practice is crucial in legal drafting to ensure absolute clarity and consistency throughout the document, preventing misunderstandings that could arise if words were interpreted using their everyday, broader meanings. When you encounter a capitalized term in a legal document (such as "Party," "Agreement," or "Services"), it typically signals that it is a defined term, and its precise meaning will be found elsewhere in that document, usually in an introductory section or a dedicated definitions clause.

• Example 1: Commercial Software Development Agreement

  In a contract between a client and a software development company, the term "Deliverables" might be defined as: "Deliverables means the completed software code, user manuals, and all associated documentation specified in Schedule A."

  This example illustrates a defined term because, in common usage, "deliverables" could broadly refer to anything produced. However, by specifically defining "Deliverables" within this contract, both parties clearly understand the exact items the software developer is obligated to provide, avoiding any ambiguity about the scope of work.

• Example 2: Company Privacy Policy

  A company's online privacy policy might include the definition: "Personal Data refers to any information relating to an identified or identifiable natural person, including but not limited to name, email address, IP address, and browsing history."

  Here, "Personal Data" is a defined term. While the general concept of personal data is widely understood, this specific definition within the policy clarifies exactly what types of information the company considers "Personal Data" and therefore subject to its stated privacy protections, ensuring compliance with relevant data protection regulations and transparency with users.

• Example 3: Residential Lease Agreement

  In a lease agreement for an apartment, the term "Premises" could be defined as: "Premises means Apartment 3B at 123 Oak Street, including the exclusive use of the living space, kitchen, and bathroom, but excluding common areas such as hallways, laundry room, and shared gym facilities."

  This demonstrates a defined term because, in everyday language, "premises" might broadly refer to the entire building or property. However, by specifically defining "Premises" in the lease, it precisely delineates the exact physical space the tenant is renting and is responsible for, clearly distinguishing it from shared areas managed by the landlord.