How would you define "Term Contract" in a legal contract? (2024)

FAQs

How would you define "Term Contract" in a legal contract? ›

Term contract means a contract for goods or services in which a source or sources of supply are established for a specified period of time at an agreed upon price or prices.

A term contract is an agreement between a customer and a supplier that sets out the terms of the relationship between them. The contract will specify the products or services to be supplied, the price, the delivery schedule, and any other terms and conditions of the agreement.

A contract is an agreement between two parties that creates an obligation to perform (or not perform) a particular duty. A legally enforceable contract requires the following elements, all of which are discussed in more detail below.

A contractual term is "any provision forming part of a contract". Each term gives rise to a contractual obligation, the breach of which may give rise to litigation. Not all terms are stated expressly and some terms carry less legal gravity as they are peripheral to the objectives of the contract.

Example: Fixed Term

The Agreement shall commence on [date | the date of this Agreement], and continue for a period of [2] years and thereafter terminate. We run through some examples of contingent commencement of contracts and termination of contracts in the context of conditions precedent.

People tend to use the terms 'agreement' and 'contract' interchangeably. But in fact, while all contracts are agreements, not all agreements are contracts.

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.

Normally, definitions would be listed in the article 1 of a contract. It aligns with best practice rule 8, that defined terms must not be used in the body text before they are defined. The lead-in of the definitions article could be: In this Agreement:…

A contract is a legally binding exchange of promises or agreement between parties that is enforceable by law. In contract law, legal purpose is the requirement that the object of, or reason for, the contract must be legal.

Offer and Acceptance

The most basic rule of contract law is that a legal contract exists when one party makes an offer and the other party accepts it.

Is a term in a contract a condition? ›

Hence, the difference between terms and conditions is that the terms of a sale is the broad agreement between the two parties outlining a contractual relationship. The conditions are specific clauses that must be met for the deal to go through successfully.

For example, an angle is a defined term in geometry, because we can define it as the corners that are produced when two lines intersect. That is, we can define an angle using other geometrical terms (in this definition, those terms are a line and an intersection point).

Representations are statements made during the negotiation process, while terms of contract are the actual provisions included in the final document. It`s important to understand the difference between these two concepts to avoid misunderstandings and legal disputes.

Term Contract means a price arrangement in which a source of supply is established for a specific timeframe for agreed deliverables, usually characterized by an estimated or definite minimum quantity with the possibility of additional needs beyond the minimum, all at a pre-decided unit price.

There are only very specific circ*mstances or penalties that might allow a party to duck out of this prematurely. With a no-term agreement, however, either party can terminate the contract at any time and for any reason. No-term contracts have many applications, including: Employment contracts.

Defining a term gives that word or phrase a particular, special meaning within the context of the legal document, and not the meaning that would be used in everyday language. This happens mostly to general words when we want to narrow the range of its meaning.

"Terms" are the specific clauses both parties agree to in a contract. For example, in a real estate purchase contract, the terms may be that the party has agreed to purchase a specific house or condominium unit at a fixed price with an established closing date.

Full-time contracts

These contracts are generally offered for permanent positions, and usually set out the employee's salary or hourly wage. Other details included within a full-time contract include holiday entitlements, pension benefits, parental leave allowances, and details on Statutory Sick Pay (SSP).