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LSDefine
Simple English definitions for legal terms
vital term
Read a random definition: heritable obligation
A quick definition of vital term:
A vital term is a very important word or phrase in a contract that must be included for the contract to exist. It specifies an essential purpose of the contract, and if it is not fulfilled, the performance is considered defective. An implied term is a provision that is not expressly agreed to by the parties but is read into the contract by a court. A material term is a contractual provision dealing with a significant issue such as subject matter, price, payment, quantity, quality, duration, or the work to be done. A nonfundamental term is any contractual provision that is not regarded as a fundamental term. A term of years is a fixed period covering a precise number of years, and it can also refer to the period during which a court conducts judicial business.A more thorough explanation:
A vital term is a contractual provision that must be included for a contract to exist. It specifies an essential purpose of the contract, so that a breach of the provision through inadequate performance makes the performance not only defective but essentially different from what had been promised. In other words, it is a fundamental term that cannot be ignored or breached without serious consequences.
For example, in a contract for the sale of goods, the delivery date is a vital term. If the seller fails to deliver the goods on the agreed date, the buyer can terminate the contract and claim damages for any losses suffered as a result.
Another example is a lease agreement for a commercial property. The rent amount and payment schedule are vital terms. If the tenant fails to pay the rent on time, the landlord can terminate the lease and evict the tenant.
Overall, vital terms are crucial for the proper functioning of a contract and should be carefully negotiated and agreed upon by all parties involved.