Legal Definitions - term

The word "term" has several distinct meanings in a legal context, often referring to either a specific period of time, a particular condition within an agreement, or a specialized word or phrase.

• First, "term" can refer to a specific duration or period of time during which an agreement, right, or office is valid or in effect. This period can be established by law or by the parties involved in an agreement.

  • Example 1: A Business Loan
    A small business owner secures a loan from a bank to expand operations. The loan agreement specifies a term of five years, meaning the business has five years to repay the principal and interest according to the agreed-upon schedule.

    Explanation: Here, "term" refers to the entire five-year duration for which the loan contract is active and binding, defining the timeframe for repayment.

  • Example 2: A Copyright
    An author publishes a new novel. Under copyright law, the author's exclusive rights to their work typically last for their lifetime plus 70 years. This entire duration is the term of the copyright.

    Explanation: In this context, "term" signifies the legally defined period during which the author (or their heirs) holds exclusive rights over the creative work before it enters the public domain.

• Second, "term" can refer to a specific condition, provision, or clause within a contract or agreement. These are the individual stipulations that parties agree to abide by.

  • Example 1: Software License Agreement
    When a user installs new software, they often click "I agree" to a license agreement. One term in this agreement might state that the software can only be installed on a single computer. Another term might prohibit reverse engineering the software.

    Explanation: Each of these individual rules or conditions, such as the single-computer installation limit or the prohibition on reverse engineering, represents a specific "term" that the user agrees to abide by as part of the overall contract.

  • Example 2: Real Estate Purchase Agreement
    A buyer and seller are negotiating the purchase of a house. One of the terms in their agreement might be that the sale is contingent upon the buyer securing financing within 30 days. Another term might specify that the seller must repair the roof before closing.

    Explanation: These specific conditions—the financing contingency and the roof repair requirement—are individual "terms" that form part of the larger contract, outlining particular obligations or prerequisites for the sale to proceed.

• Finally, "term" can denote a word or phrase that has a particular, established meaning within a specific field, such as law.

  • Example 1: Legal Jargon
    In a legal discussion about a criminal case, a lawyer might use the term "mens rea." This specific Latin phrase refers to the mental state or intent required for a crime to be committed.

    Explanation: Here, "term" refers to a specialized word or phrase ("mens rea") that has a precise and established meaning within the legal field, distinct from its everyday usage.

  • Example 2: Business Terminology
    When discussing a company's financial health, an accountant might use the term "liquidity." This refers to how easily an asset can be converted into cash without affecting its market price.

    Explanation: In this instance, "term" denotes a specific word ("liquidity") that carries a defined and technical meaning within the field of finance and accounting.