Term

How it is used

In the plural, 'the terms' means the content of the deal: 'agree terms', 'on the following terms'. Lawyers separate express terms (stated by the parties) from implied terms (added by law or custom). In the singular it often means duration: 'an initial term of three years'.

Example sentences

1. We are close to agreeing terms with the new distributor.

2. The agreement has an initial term of two years and renews automatically.

3. Implied terms can protect a buyer even when the contract says nothing.

Common collocations

• agree terms
• express terms
• implied terms
• initial term
• terms of payment

Related terms

• clauseA numbered section of a contract that deals with one specific subject, such as payment, confidentiality or termination.
• conditionAn essential term of a contract whose breach allows the other party to terminate; also an event that must happen before an obligation starts or that brings it to an end.
• warrantyA promise in a contract that a fact is true or that goods or services meet a certain standard; if it proves wrong, the other party can usually claim damages.
• terms and conditionsThe standard rules that a business applies to all its sales or services, usually published on its website, in quotations or on the back of order forms.

More terms: Contract Terms & Clauses

• obligation
• governing law
• force majeure
• indemnity
• representation
• limitation of liability
• confidentiality clause
• amendment
• waiver
• assignment
• entire agreement clause
• severability