Legal Definitions - stated term

A stated term refers to a contract or agreement that has a clear, predetermined end date or a specific, fixed duration. This means that the parties involved know exactly how long the agreement is intended to last from the very beginning, rather than it being open-ended or terminable at will.

Here are some examples to illustrate this concept:

• Residential Lease Agreement: Imagine a person signs a lease to rent an apartment. The lease document specifies that the rental period begins on July 1, 2024, and concludes on June 30, 2025. This is a stated term because the agreement explicitly defines its duration as one year, with clear start and end dates. Both the landlord and the tenant understand precisely how long the rental arrangement is set to last.

• Project-Based Consulting Contract: A marketing agency hires a freelance graphic designer to create visuals for a new advertising campaign. Their contract stipulates that the designer will be engaged for a period of three months, or until the campaign's launch date, whichever comes first, but not exceeding four months. This arrangement has a stated term because it sets a definite maximum duration for the designer's engagement, even if the exact end date might be slightly flexible based on project completion within that defined window.

• Software License Agreement: A small business purchases a license for a specialized accounting software. The license agreement specifies that the software can be used for a period of five years from the date of purchase, after which a new license must be acquired or the existing one renewed. This is a stated term because the duration of the license's validity is fixed and clearly communicated at the time of the agreement, providing a definite timeframe for its use.